Vedanta Demerger Gets NCLT Nod; Shares Surge 9%; What It Means For Investors

Vedanta's shares surged after the National Company Law Tribunal (NCLT) approved its demerger plan. The conglomerate will split into five separately listed companies: Vedanta Aluminium, Oil & Gas, Iron & Steel, Power, and the parent Vedanta Ltd.

Shares of Vedanta Ltd surged to a fresh all-time high on Wednesday (December 17) after the National Company Law Tribunal (NCLT) gave its green light to the company's ambitious demerger plan, boosting investor confidence in the metals-to-oil conglomerate's restructuring strategy.

The stock climbed as much as 1.92 per cent to Rs 580.45 on the NSE in early trade. With this move, Vedanta shares have gained nearly 9 per cent over the last five trading sessions. On Tuesday, the stock had already jumped 4.2 per cent to close at Rs 572.50 after the company announced the tribunal's approval in the final hour of trading.

NCLT Approval Triggers Execution Phase

Vedanta said the Mumbai Bench of the NCLT has sanctioned the Scheme of Arrangement for its demerger into four independent, pure-play businesses through an order dated December 16, 2025. The approval marks a key regulatory milestone for the group.

With the tribunal's nod now in place, and subject to additional government and regulatory clearances, the company said it is moving into the execution phase of what it described as a transformational demerger. Once completed, the restructuring will result in five separately listed companies, including Vedanta Limited.

Five Focused Companies To Emerge

After the demerger, Vedanta's businesses will operate as independent, sector-focused entities. These will include Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Iron & Steel, and Vedanta Power. Vedanta Limited will continue as the parent company, housing Hindustan Zinc Limited and incubating future-oriented businesses.

The company said each of these entities will have a clear strategic mandate, focused management teams and dedicated capital structures, allowing them to pursue growth opportunities more independently.

Why Vedanta Is Splitting Its Businesses

Vedanta said the demerger is aimed at unlocking long-term value for shareholders by giving investors direct exposure to high-quality, sector-leading assets. The move is also expected to simplify the group's corporate structure and strengthen transparency, accountability and strategic clarity across businesses.

The company believes the new structure will help each business benefit more effectively from India's infrastructure push, rapid urbanisation, energy transition and emphasis on domestic manufacturing and resource security.

What Shareholders Need To Know

Vedanta clarified that existing shareholders will receive equity shares in each of the four newly listed entities in proportion to their current shareholding, in addition to retaining their shares in Vedanta Limited. This means investors will continue to hold their stake while gaining direct participation in the growth journeys of individual businesses.

According to the company, the demerged entities will enjoy greater strategic flexibility and independent access to capital, enabling management teams to align decisions more closely with commodity cycles, customer demand and investment timelines.

Chairman Anil Agarwal Calls It a Landmark Moment

Commenting on the development, Vedanta Chairman Anil Agarwal said the NCLT's approval marks a defining chapter in the company's journey.

"This is a landmark moment in Vedanta's journey. The NCLT's approval reinforces our vision to create focused, world-class companies better aligned with India’s growth ambitions and the evolving global demand for resources, energy and technology," Agarwal said.

He added that each of the demerged entities has the potential to grow manifold, attract strategic investments and deliver superior value, especially at a time when these sectors are witnessing double-digit growth, while keeping sustainability at the core of the group's strategy.