Vedanta Demerger: What will remain with Vedanta Ltd after the split?

Vedanta Demerger: As Vedanta Group moves closer to listing its four demerged entities, investors are getting a clearer picture of what the residual Vedanta Ltd will look like after the group's biggest-ever corporate restructuring. The company has positioned the post-demerger Vedanta Ltd as a focused critical minerals and strategic metals business, retaining some of the group's most valuable mining and metals assets.

Vedanta's demerger enters final stage

The demerger process has entered its final phase after Talwandi Sabo Power Ltd, the group's power business, officially changed its name to Vedanta Power Ltd. The Registrar of Companies under the Ministry of Corporate Affairs approved the name change on June 3, according to exchange filings.

The development comes after Vedanta Group formally transitioned into five independent sector-focused companies from May 1. Under the restructuring, shareholders of Vedanta Ltd have received shares in four demerged businesses in a 1:1 ratio.

The group will now operate through five standalone companies — Vedanta Ltd (residual entity), Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power, and Vedanta Iron & Steel.

What remains with Vedanta Ltd?

Vedanta’s May 2026 investor update showed that Vedanta Ltd will remain as a critical minerals and strategic metals company, as demand for minerals needed in electrification, renewable energy, batteries, artificial intelligence infrastructure and defence manufacturing around the world increases.

The company will retain a portfolio of mining and metals assets across zinc, silver, copper, nickel, ferrochrome and critical minerals.

Key businesses remaining under Vedanta Ltd include:

• Hindustan Zinc, the world's largest integrated zinc producer.
• Zinc International, where production capacity is targeted to expand from 0.3 million tonnes per annum to 1 million tonnes per annum by the end of the decade.
• Sterlite Copper, which the company says serves around 35 per cent of India's copper market.
• Nicomet, India's only nickel producer.
• FACOR, providing exposure to ferrochrome and stainless steel materials.
• Critical Mineral Blocks, including lithium, cobalt, rare earth elements (REEs), tungsten, vanadium and manganese assets.

The company said these assets position Vedanta Ltd to play a larger role in India's push to secure critical mineral supplies and reduce import dependence.

What will Vedanta Power look like?

Vedanta Power, formerly Talwandi Sabo Power Ltd, will operate as a dedicated power company after the demerger.

According to Chairman Anil Agarwal, the company currently has 4.2 GW of operational power capacity and a 12 GW expansion pipeline. The company also plans to diversify beyond thermal power into hydropower and nuclear energy while maintaining long-term coal linkages.

Vedanta Group has said it aims to build one of India's largest power platforms through the new entity.

How has the shareholding been structured?

Vedanta shares have been trading ex-demerger since April 30 following a special price discovery session conducted by stock exchanges.

For investors, the company has stated that 12.23 per cent of the original acquisition cost of Vedanta Ltd shares can be allocated to Vedanta Power for tax and portfolio accounting purposes.

Under the approved scheme, shareholders have received one share each in the four demerged companies for every one Vedanta share held on the record date.

When will the demerged companies list?

The four demerged entities are expected to be listed on the NSE and BSE by mid-June 2026, subject to regulatory approvals and exchange clearances.

Before listing, shares are credited to shareholders' demat accounts but remain frozen until exchanges complete compliance checks and grant final trading approval. Market participants typically expect such listings within 30 to 45 days from the record date, although timelines can vary depending on regulatory processes.

Credit rating upgrade boosts sentiment

Separately, Vedanta Group said on May 29 that rating agency ICRA upgraded the long-term ratings of key group entities to AA+, the highest domestic credit rating received by the group in more than a decade.

An AA+ rating indicates a high degree of safety regarding timely servicing of financial obligations and reflects very low credit risk.

The demerger is expected to create five focused businesses, while the residual Vedanta Ltd becomes a pure-play critical minerals and metals company aligned with India's long-term resource security strategy.

Vedanta share price

Vedanta shares were trading at Rs 309.30 on Monday, down 2.00 per cent, or Rs 6.30, at 11:05 am.