Vedanta Approves Demerger Plan, Sets Record Date for Share Issuance
Vedanta clears demerger plan, sets 1 May 2026 as record date
Business Standard
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Vedanta has approved a demerger plan, effective from May 1, 2026, allowing shareholders to receive shares in four independent entities: aluminium, power, oil and gas, and iron ore. This restructuring aims to simplify the company's business operations and enhance focus on specific sectors.
- 01Demerger effective from May 1, 2026, with a 1:1 share issuance for existing shareholders.
- 02New entities will include Vedanta Aluminium Metal, Vedanta Power, Vedanta Oil and Gas, and Vedanta Iron and Steel.
- 03Vedanta's net profit rose by 60.98% to ₹5,710 crore for Q3 December 2025.
- 04The company's revenue from operations increased by 36.95% year-on-year to ₹23,369 crore.
- 05Shares of Vedanta fell by 2.15% to ₹770.65 on the Bombay Stock Exchange.
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On April 20, 2026, Vedanta's board approved a demerger plan that will take effect on May 1, 2026. Shareholders will receive shares in four newly formed entities—Vedanta Aluminium Metal, Vedanta Power, Vedanta Oil and Gas, and Vedanta Iron and Steel—at a 1:1 ratio. This restructuring is part of Vedanta's strategy to simplify its business operations and enhance focus on specific sectors. Additionally, Vedanta will transfer its shareholding in Bharat Aluminium Company (BALCO) to Vedanta Aluminium Metal, consolidating its aluminium business. The company reported a 60.98% increase in net profit to ₹5,710 crore and a 36.95% rise in revenue to ₹23,369 crore for the third quarter ending December 2025. Despite these positive financial results, Vedanta's shares decreased by 2.15% to ₹770.65 on the Bombay Stock Exchange.
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The demerger could lead to more focused operations in specific sectors, potentially enhancing job security and growth in those areas.
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