Vedanta shares climb 2% after NCLAT stays NLCT order rejecting demerger

Vedanta share price rose 2.3 per cent in trade on Thursday, May 27, 2025, logging an intraday high at ₹457 per share on BSE. The stock advanced after the National Company Law Appellate Tribunal (NCLAT) granted an interim stay on an order passed by the National Company Law Tribunal (NCLT) rejecting Vedanta’s five-way demerger.  

At 12:58 PM, Vedanta shares were up 1.15 per cent at ₹451.8 per share on the BSE. In comparison, the BSE Sensex was down 0.09 per cent at 81,239.32. The market capitalisation of the company stood at ₹1,76,182.53 crore. The 52-week high of the stock was at ₹527 per share and the 52-week low of the stock was at ₹362.2 per share. 

In the past one year, Vedanta shares lost 2 per cent as compared to Sensex’s rise of 9 per cent.

Vedanta demerger details 

In September 2023, Vedanta proposed a plan to demerge the current entity into six, independently listed entities. However, at the start of this year, Vedanta revised the plan to demerge the company instead into five entities, postponing plans to demerge the base metals business.

In February, Vedanta informed that its demerger-related resolution was been passed by shareholders and creditors — both secured and unsecured, with the requisite majority. The resolution was passed with 99.99 per cent of those participating, voting in favour.

Post the demerger, Vedanta will be split into five resulting companies — Vedanta, Vedanta Aluminium Metal, Talwandi Sabo Power Limited, Malco Energy, and Vedanta Iron and Steel. 

However, in March, the NCLT dismissed the demerger scheme filed by Talwandi Sabo Power Ltd (TSPL) after objections were raised by SEPCO, a creditor of TSPL, in relation to the demerger of Vedanta.

The Mumbai bench of NCLT in its ruling said, “…keeping in view the facts and circumstances of the present case, we deem it appropriate to reject the scheme presented by the Applicant under Section 230 of the Companies Act.”

The decision came after China-based SEPCO Electric Power Construction Corporation raised objections to the demerger, saying that the power unit had deliberately excluded their outstanding debt of ₹1,251 crore from the list of creditors. 

SEPCO opposed the scheme, alleging that TSPL had concealed material information about its liabilities.

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