Vedanta sets May 1 as record date for demerger; approves 1:1 share allotment across 4 entities

Under the composite scheme of arrangement, shareholders of Vedanta will receive equity shares in four businesses — Vedanta Aluminium Metal Ltd (VAML), Talwandi Sabo Power Ltd (TSPL), Malco Energy Ltd (MEL) and Vedanta Iron and Steel Ltd (VISL) — in proportion to their existing holdings. Shares of Vedanta Ltd ended at ₹770.65, down by ₹16.95, or 2.15%, on the BSE today, April 20.

Mining major Vedanta Ltd on Monday (April 20) said it has fixed May 1, 2026, as the record date for its ongoing demerger, with the board approving the scheme’s effectiveness from the same date and outlining share allotment ratios for four resulting entities.

Under the composite scheme of arrangement, shareholders of Vedanta will receive equity shares in four businesses — Vedanta Aluminium Metal Ltd (VAML), Talwandi Sabo Power Ltd (TSPL), Malco Energy Ltd (MEL) and Vedanta Iron and Steel Ltd (VISL) — in proportion to their existing holdings.

For the aluminium undertaking, Vedanta Aluminium Metal Ltd will issue one fully paid-up equity share of face value ₹1 for every one equity share of ₹1 held in Vedanta. For the merchant power undertaking, TSPL will issue one equity share of face value ₹10 for every one equity share of ₹1 held in the company.

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For the oil and gas undertaking, Malco Energy Ltd will issue one equity share of face value ₹1 for every one equity share of ₹1 held, while for the iron ore undertaking, Vedanta Iron and Steel Ltd will issue one equity share of face value ₹1 for every one equity share of ₹1 held.

The company said non-convertible debentures forming part of the aluminium undertaking, under specified ISINs, will be transferred to Vedanta Aluminium Metal Ltd, with May 1, 2026, set as the record date for determining eligible debenture holders.

As part of the reorganisation, Vedanta has also approved the transfer of its shareholding in Bharat Aluminium Company Ltd (BALCO) to Vedanta Aluminium Metal Ltd. BALCO reported a turnover of ₹15,909 crore for the year ended March 31, 2025, accounting for about 10% of Vedanta’s consolidated turnover, while its net worth stood at ₹12,088 crore, contributing 39% to consolidated net worth.

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The agreement for the transfer is expected to be signed on or before April 30, 2026, with completion also targeted by the same date. Consideration will be through issuance of compulsorily convertible debentures by Vedanta Aluminium Metal Ltd, not less than the fair market value determined under Income Tax Rules, 2026.

Vedanta said Vedanta Aluminium Metal Ltd, a wholly-owned subsidiary, is the buyer, and the transaction will be treated as a related party transaction conducted at arm’s length.

Following the scheme’s implementation, Talwandi Sabo Power Ltd and Malco Energy Ltd will be renamed Vedanta Power Ltd and Vedanta Oil and Gas Ltd, respectively, subject to regulatory approvals.

Shares of Vedanta Ltd ended at ₹770.65, down by ₹16.95, or 2.15%, on the BSE today. April 20.

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(Edited by : Shoma Bhattacharjee )