Vedanta demerger faces fresh delay as NCLT to re-hear case from November 12

Vedanta Demerger: The long-pending demerger of Anil Agarwal-led Vedanta Ltd., one of India’s largest diversified mining and metals companies, has been delayed once again. The National Company Law Tribunal (NCLT) bench that was hearing the matter has been reconstituted, which means the proceedings will now start over.

Why the delay?

Under the new arrangement, the reconstituted NCLT bench will re-hear both Vedanta’s plea and the government’s objections to the proposed demerger scheme. The company, which has already extended the effective date multiple times, has requested an early start to the rehearing process. The next hearing is now scheduled for November 12.

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The development comes just days after the Securities and Exchange Board of India (SEBI) formally approved Vedanta’s revised demerger plan. SEBI had earlier issued a warning letter to the company for modifying its scheme after initial approval. The regulator has now clarified its position, stating that it was not satisfied with Vedanta’s approach but has nonetheless cleared the updated proposal.

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Vedanta told the tribunal that SEBI had reprimanded it for the changes but ultimately approved the modified structure. The demerger aimed at unlocking value by separating Vedanta’s diverse businesses into independent listed entities, is a key strategic move by the group. The restructuring aims to create sector-specific focus across its core segments — aluminium, power, oil and gas, and base metals.

Vedanta stock performance

Vedanta shares rose as much as 4 per cent earlier in the day after reports of SEBI’s approval but later gave up part of those gains following news of the NCLT delay. At closing, the stock was trading 1.9 per cent higher at Rs 512 on Wednesday. Over the past month, the stock has risen 13.2 and 15.2 per cent so far in 2025.The stock crossed the Rs 500 mark for the first time in 2025 last week.