Vedanta Limited's (Vedanta) board of directors, at its meeting held on 20 April 2026, formally approved the implementation of its long-anticipated composite scheme of arrangement, setting 1 May 2026 as both the effective date of the demerger and the record date for determining shareholders eligible to receive consideration under the scheme.
Under the scheme, Vedanta will demerge four business undertakings into separate entities — Vedanta Aluminium Metal Limited (VAML), Talwandi Sabo Power Limited (TSPL), Malco Energy Limited (MEL), and Vedanta Iron and Steel Limited (VISL). Shareholders on record as of 1 May 2026 will receive one share each in all four entities for every Vedanta share held. TSPL shares will carry a face value of ₹10, while VAML, MEL, and VISL shares will carry a face value of ₹1 each.
To be eligible for the demerged shares, investors must hold Vedanta shares in their demat account as of the record date, that is, 1 May 2026. However, since 1 May 2026 is Maharashtra Day and a public holiday for both stock exchanges and banks, trading will not take place on that date. Given that Indian equity markets follow a T+1 settlement cycle, the last date to purchase Vedanta shares and qualify for the demerger entitlement will be 29 April 2026. Investors who buy shares on or before 29 April 2026 will have their holdings reflect in their demat accounts by 1 May 2026, making them eligible to receive shares in the demerged entities.
Certain non-convertible debentures forming part of the Aluminium Undertaking will also be transferred to VAML on the same record date. Upon the scheme's effectiveness, TSPL and MEL will be renamed Vedanta Power Limited and Vedanta Oil and Gas Limited, respectively, subject to regulatory approval.
Separately, the board also approved the transfer of Vedanta's shareholding in Bharat Aluminium Company Limited (BALCO) to VAML. The agreement for this share sale between Vedanta and VAML is expected to be signed on or before 30 April 2026, with the transaction expected to be completed by the same date.
BALCO's turnover for FY24-25 stood at ₹15,909 crore, constituting approximately 10% of Vedanta's consolidated revenue for the year. BALCO's net worth as of 31 March 2025 was ₹12,088 crore, representing 39% of the company's consolidated net worth as of the same date.
The demerger is widely regarded as one of the most significant corporate restructurings in India's metals and mining sector. The restructuring scheme had previously secured shareholder and creditor approvals, and received a pivotal boost when the national company law tribunal (NCLT) approved it in December 2025. Once implemented, Vedanta's diversified businesses will operate as independently listed entities, enabling investors to hold direct stakes in distinct, sector-focused companies rather than a single conglomerate.
The company has maintained that the split will help simplify its business structure, sharpen management focus, and unlock value by allowing each vertical to chart its own growth and capital allocation trajectory. Vedanta's chairman Anil Agarwal had previously indicated that the combined valuation of all demerged entities could surpass the current unified market capitalisation of the company, according to Reuters and earlier media reports.
The demerger also coincides with Vedanta's ongoing efforts to reshape its balance sheet, with parent Vedanta Resources continuing its deleveraging drive. With the effective date and share entitlements now formally announced, market attention is expected to shift to listing timelines and individual valuations of each resulting company once trading in their shares commences.
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