Vedanta Demerger: Big update from NCLT; see how it impacts your average cost

Vedanta Demerger: As Vedanta Limited demerger share credit process has started, many investors are now checking when the new shares will appear in their demat accounts and how the demerger will affect their average cost.

The company has now shared the cost allocation ratio for shareholders in its exchange filing.

How will average cost change?

Vedanta said shareholders will have to divide their original acquisition cost across five companies after the demerger.

The allocation ratio is:

• Vedanta Limited: 52.34 per cent
• Vedanta Aluminium Metal Limited (VAML): 7.15 per cent
• Talwandi Sabo Power Limited (TSPL): 12.23 per cent
• Malco Energy Limited (MEL): 21.49 per cent
• Vedanta Iron and Steel Limited (VISL): 6.79 per cent

This means the total investment value does not change. The original purchase cost only gets distributed among five separate listed companies.

For example, if an investor bought Vedanta shares worth Rs 1 lakh, then:

• Rs 52,340 will be treated as acquisition cost of Vedanta Limited
• Rs 7,150 for VAML
• Rs 12,230 for TSPL
• Rs 21,490 for MEL
• Rs 6,790 for VISL

The company said this ratio was calculated based on the net worth of Vedanta and the net assets of its aluminium, merchant power, oil and gas, and iron ore businesses, in line with Section 73 of the Income-tax Act, 2025.

NCLT approved the demerger scheme

Vedanta said the Hon’ble National Company Law Tribunal (NCLT), Mumbai Bench approved the demerger scheme through orders dated December 16, 2025 and January 9, 2026.

Under the scheme, the aluminium, merchant power, oil and gas, and iron ore businesses were transferred into four separate companies on a going concern basis.

The company added that the scheme became effective from May 1, 2026. The same date is also treated as the appointed date under the scheme.

What shareholders are getting

As per the approved structure, shareholders holding Vedanta shares on the record date of May 1, 2026 are eligible for the demerger benefits.

For every 1 fully paid-up Vedanta share held, investors received:

• 1 share of Vedanta Aluminium Metal Limited
• 1 share of Talwandi Sabo Power Limited
• 1 share of Malco Energy Limited
• 1 share of Vedanta Iron and Steel Limited

This means an investor holding 100 Vedanta shares will receive 100 shares each of the four resulting companies.

Why shares may not appear in trading apps yet

Many investors said the demerged shares are still not visible properly in their broker apps despite allotment.

The shares have already started getting credited into demat accounts. However, trading in these companies has not started yet as final approvals from stock exchanges are still pending.

During the company’s Q4 earnings interaction, Vedanta management said listing applications will soon be filed with exchanges.

Vedanta CFO Ajay Goel said trading in the resulting companies is expected to begin during the first quarter of FY27.

How investors can check credited shares

Investors can check whether the shares are credited through their demat statement or via the CDSL EASI platform.

CDSL EASI is an online facility provided by Central Depository Services Limited that allows investors to track their demat holdings and corporate action updates.

Vedanta share price

At around 1:30 pm, Vedanta shares were trading at Rs 326.45, down 1.39 per cent for the day.

The stock opened at Rs 323.90 and touched an intraday high of Rs 329.35. It hit a low of Rs 320.65 during the session.

Vedanta’s market capitalisation stood at around Rs 1.21 lakh crore. The stock’s 52-week high is Rs 340.65, while the 52-week low is Rs 151.20.