Vedanta shares fall 3% as Centre objects to demerger; NCLT defers hearing

The NCLT deferred the hearing on Vedanta's proposed demerger after serious objections raised by the central government

Vedanta share price today: Shares of mining giant Vedanta fell nearly 3 per cent to hit an intraday low of ₹438.65 on the NSE after the National Company Law Tribunal (NCLT) deferred the hearing on the company's proposed demerger to September 17. 

 

At 1 PM, the company's stock was trading 2.3 per cent lower at ₹439.96 per share compared to the previous session's close of ₹450.2 on the NSE. In comparison, NSE Nifty50 was up 0.3 per cent at 24,056 levels. The market capitalisation of the company stood at ₹1.72 trillion. The stock has fallen around 17 per cent from the 52-week high of ₹526.95 touched on December 16, 2024.

 

According to a report by CNBC TV18, the deferral comes after serious objections raised by the central government, which said that the demerger could affect its ability to recover dues from the company. 

 

During the NCLT proceedings, the government accused the company of hiding and failing to disclose key information regarding the demerger.

 

It also raised concerns around inflated revenues and concealed liabilities, adding that Vedanta modified its demerger plan following the receipt of a No Objection Certificate (NOC) from the Securities and Exchange Board of India (SEBI) and the stock exchanges.

 

Sebi confirmed that Vedanta altered the scheme after obtaining the NOC. The regulator termed the alteration as "serious breach" of the relevant master circular and issued an administrative warning to Vedanta, the report added.

 

In addition, the company has scheduled a board meeting on August 21 to consider and approve a second interim dividend for the financial year 2025-26 (FY26). The record date for the dividend has been fixed as August 27. 

 

In September 2023, Vedanta announced its demerger plan to divide into four separate listed companies specialising in aluminium, oil and gas, power, and base metals. According to the company, the restructuring aims to enhance operational efficiency, simplify management, and maximise shareholder value.

 

However, the deadline for finalising the demerger was moved from March 2025 to September 30, 2025, due to pending approvals from the NCLT and other regulatory bodies.

About Vedanta 

Incorporated in 1975, Vedanta, a subsidiary of Vedanta Resources, is a global natural resources and technology conglomerate. It has operations in India, South Africa, Liberia, and Namibia. The company has presence across various sectors, including Oil & Gas, Zinc-Lead-Silver, Aluminium, Iron Ore, Steel, Copper, Ferro Alloys, Power, Nickel, Semiconductor, and Glass. The company’s primarily caters to industrial consumers in sectors such as automotive, steel, power generation, infrastructure, battery manufacturing and oil. It serves customers across India and over 130 countries globally.