Vedanta shares jump 3% to record high on demerger update: May 1 record date set; key details

In a filing to BSE, Vedanta said that "the board of directors of the company at its meeting held on April 20, 2026, as part of the ongoing reorganisation process, has, inter alia, approved to make the scheme effective on May 1, 2026."

The company added that in consultation with other entities involved, the board has fixed May 1 as the record date for determining the shareholders eligible to receive consideration pursuant to the scheme.

"The board … as part of the ongoing reorganisation process, has, inter alia, approved. In consultation with VAML, TSPL, MEL and VISL, the Board has fixed May 1, 2026, as the record date for determining the shareholders eligible to receive consideration pursuant to the Scheme," it said.

What shareholders need to know here

May 1, 2026, is fixed as the record date to determine shareholder eligibility.

Investors holding shares in their demat accounts as of the record date will be eligible to receive shares in the newly demerged entities.

However, since May 1 is a market and bank holiday, the effective last day to purchase Vedanta shares to qualify for the demerger is April 29.

Demerger structure and ratio

Under the proposed restructuring, shareholders will benefit from a 1:1 demerger ratio. This means that for every one share of Vedanta Ltd held, investors will receive one share each in four newly created companies.

• Vedanta Aluminium

• Vedanta Oil & Gas

• Vedanta Power

• Vedanta Steel and Ferrous Materials

• Vedanta Ltd (existing entity)

Rationale behind the demerger

The demerger is aimed at unlocking value across individual business verticals, allowing each segment to operate independently and attract focused investor interest.

Among the businesses, according to analysts, aluminium is expected to remain the most valued segment, followed by the zinc business, given their scale, profitability, and global demand dynamics.

The restructuring is also likely to provide greater operational flexibility and clearer visibility into the performance of each vertical, which could enhance overall shareholder value over the long term.

Demerger details

According to the exchange filing, under the composite scheme of arrangement, shareholders of Vedanta will receive equity shares in four businesses in a 1:1 ratio.

As consideration for the demerger of the aluminium undertaking, Vedanta Aluminium Metal Limited (VAML) will issue and allot one fully paid-up equity share of VAML having a face value of ₹1 for every one fully paid-up equity share of ₹1 of Vedanta.

The filing further said that for the merchant power undertaking, Talwandi Sabo Power Ltd (TSPL) shall issue and allot one fully paid-up equity share of TSPL having a face value of ₹10 for every one fully paid-up equity share of Vedanta.

As far as the demerger of the oil and gas undertaking is concerned, Malco Energy Ltd (MEL) will issue one equity share of MEL of face value of ₹1 each for each fully paid-up share of Vedanta held by the shareholder, the company said.

For the demerger of the iron ore undertaking, Vedanta Iron and Steel Limited (VISL) will issue and allot one fully paid-up equity share of VISL with a face value of ₹1 for every one fully paid-up equity share of Vedanta, it said.

Other details

The company further said that non-convertible debentures (NCDs) forming part of the aluminium undertaking will be transferred to Vedanta Aluminium Metal, with May 1, 2026, set as the record date for determining eligible debenture holders.

Vedanta has also approved the transfer of its shareholding in Bharat Aluminium Company Ltd (BALCO) to Vedanta Aluminium Metal Ltd.

Further, following the implementation of the scheme, the names of Talwandi Sabo Power Ltd and Malco Energy Ltd will change to Vedanta Power Ltd and Vedanta Oil and Gas Ltd, respectively.

"Further, in terms of the Scheme and upon effectiveness thereof, the names of Talwandi Sabo Power Limited and Malco Energy Limited will change to ‘Vedanta Power Limited’ and ‘Vedanta Oil and Gas Limited’, respectively, or such other names as may be approved by the Registrar of Companies," the filing said.

Demerger deadline

Vedanta Ltd had earlier said that it has extended the deadline for its proposed demerger to June 30, as approvals from certain government authorities remain pending and are still being processed.

The Anil Agarwal-led company had already shifted the original deadline for the proposed demerger from March 31, 2025, to September 30, 2025, and then to March 31, 2026.

About Vedanta Limited

Incorporated in 1965, Vedanta Limited is one of India’s leading natural resources companies. It was founded by Anil Agarwal and is a subsidiary of Vedanta Resources.

The company is engaged in the exploration, extraction, and processing of minerals and oil & gas, with a diversified portfolio spanning zinc, lead, silver, aluminium, iron ore, steel, copper, power, and ferrochrome.

Vedanta Limited operates across key mineral-rich states such as Goa, Karnataka, Rajasthan, and Odisha, playing a significant role in supporting India’s industrial and infrastructure growth.

The company focuses on large-scale operations, cost efficiency, and sustainable resource development, while continuing to invest in technology, safety, and environmental responsibility.

As part of its sustainability roadmap, Vedanta Limited aims to become a leader in ESG practices within the natural resources sector. It has set a target to achieve net-zero carbon emissions by 2050 or earlier and has committed $5 billion over the next decade to support its transition towards greener operations.