Mumbai, April 21: Vedanta Limited has announced that its Board of Directors has approved significant steps to implement its previously announced ‘Composite Scheme of Arrangement.’ This marks a notable achievement in the company’s ongoing strategic restructuring.
The board has set May 1, 2026, as the effective date and record date for the demerger, determining which shareholders will be eligible to receive shares in the entities formed as a result of the demerger.
This demerger is a crucial step toward simplifying Vedanta’s corporate structure, creating independent businesses focused on specific sectors. It will also provide world-class investors, including sovereign wealth funds, retail investors, and strategic investors, the opportunity to engage with India’s growth story through Vedanta’s premier assets. The separation will allow different units to advance their plans with greater freedom and better align with consumers, investment cycles, and end markets.
Share Eligibility Details
Eligible shareholders of Vedanta Limited will receive shares in the resulting companies in the following ratios:
1. Vedanta Aluminium Metal Limited (VAML): 1 equity share (face value ₹1) for every 1 share of Vedanta.
2. Talwandi Sabo Power Limited (to be renamed Vedanta Power Limited): 1 equity share (face value ₹10) for every 1 share of Vedanta.
3. Malco Energy Limited (to be renamed Vedanta Oil and Gas Limited): 1 equity share (face value ₹1) for every 1 share of Vedanta.
4. Vedanta Iron and Steel Limited (VISL): 1 equity share (face value ₹1) for every 1 share of Vedanta.
Key Aspects of the Restructuring
This demerger will result in the establishment of four independent, sector-focused entities in the aluminum, power, oil and gas, and iron ore and steel sectors. Talwandi Sabo Power Limited and Malco Energy Limited will be renamed Vedanta Power and Vedanta Oil and Gas, respectively.
The demerger is expected to enhance operational focus and streamline business operations, allowing the separated entities to better align with their markets, customer needs, and investment requirements. Additionally, transparency will increase across all resulting organizations, making it easier to evaluate each vertical’s performance.
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