Vedanta hits fresh record high as NCLT nods to demerger plan: What shareholders need to know; shares rally 9% in 5 sessions

The stock surged as much as 1.92% to hit the all-time high level.

With today's rally, the stock has jumped 9% in the past five sessions, data show.

Shares of the company, following the order in the last hour of the trade on Tuesday, saw a sharp increase. The stock ended 4.2% higher at ₹572.50 on the NSE.

Vedanta said with this approval and subject to receipt of certain government and regulatory approvals and other stakeholder clearances, Vedanta enters the execution phase of a transformational demerger that will result in five separate listed companies (including already listed Vedanta Limited), each with a clear strategic mandate, focused management teams, and dedicated capital structures.

Demerger Rationale

The demerger is designed to unlock long-term value for shareholders and provide investors direct exposure to high-quality, sector-leading assets aligned with India’s growth and global energy transition trends.

It represents a significant step in simplifying Vedanta’s corporate structure while strengthening accountability, transparency, and strategic clarity across the company’s businesses.

What are the names of the five different entities?

Post-demerger, Vedanta’s businesses will operate as independent, sector-specific companies, each positioned to capitalise on its respective market opportunities. The resulting entities will be as follows:

• Vedanta Aluminium

• Vedanta Oil & Gas

• Vedanta Iron & Steel

• Vedanta Power*

• Vedanta Limited (to continue as the parent company housing Hindustan Zinc Limited and incubating future-facing businesses)

(*The approval for the demerger of the merchant power business of Vedanta Limited is currently pending before the Hon’ble NCLT under a separate proceeding.)

What Vedanta shareholders need to know

The company's press release added that shareholders of Vedanta will receive equity shares in each of the four resulting listed entities (in addition to their shareholding in Vedanta Limited) in proportion to their existing holdings, ensuring continuity of ownership while enabling direct participation in the growth trajectories of individual businesses.

Strategic rationale

Each demerged entity will operate with greater strategic flexibility, sharper market focus, and independent access to capital. Management teams in the demerged entities will align decision-making more closely with customer needs, investment cycles, and commodity-specific dynamics, while enabling investors to evaluate and value each business on its own merits.

The demerged entities will benefit from India’s continued infrastructure build-out, rapid urbanisation, energy transition, and emphasis on domestic manufacturing and resource security.

The new structure positions each company to respond nimbly to these trends while pursuing disciplined growth and operational excellence.

What Anil Agarwal, Chairman, Vedanta Ltd, said

“This is a landmark moment in Vedanta’s journey. The NCLT’s approval reinforces our vision to create focused, world-class companies better aligned with India’s growth ambitions and the evolving global demand for resources, energy, and technology," the chairman added.

Each of these entities has the potential to grow manifold, attract strategic investment, and deliver superior value as these sectors are witnessing double-digit growth. The demerger is also about empowering leadership and ensuring that our commitment to sustainable growth remains deeply embedded in every company, Agarwal added.

Overview of the resulting businesses