Vedanta shares jump 2.6%, scale 52-week peak: Latest updates on demerger matter you need to know

The stock advanced as much as 2.66% to scale its 52-week high of ₹534.50 on the NSE in the early trade.

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Instead, the judge will take some time to consider the matter and will deliver the order or judgement later.

A PTI report stated that the newly constituted bench of the NCLT heard the application filed by Vedanta seeking regulatory clearances for the proposed demerger of the company under Sections 230-232 of the Companies Act.

However, the counsel representing the Ministry of Petroleum and Natural Gas (MoPnG) cited concerns over the potential financial risks post-demerger of Vedanta and alleged misrepresentation of hydrocarbon assets and insufficient disclosure of liabilities by the metal and mining conglomerate.

The ministry's counsel said that MoPnG also wants disclosures on the concealment of facts, which includes showing the exploration blocks as Vedanta's assets and details of the loan taken on the basis of those assets, among others.

In response, Vedanta's counsel said that the company has already complied with all the required norms.

He also informed the tribunal that the Securities and Exchange Board of India (SEBI) has cleared its revised demerger plan after earlier warnings on disclosure and compliance issues.

Meanwhile, a Vedanta spokesperson said, "The company remains committed to the proposed demerger, which aims to create independent, sector-specific entities across aluminium, oil and gas, power, and iron and steel."

Vedanta had filed a scheme of arrangement before the NCLT Mumbai bench covering four group companies – Vedanta Aluminium Metal, Talwandi Sabo Power, Malco Energy, and Vedanta Iron and Steel – along with their shareholders and creditors.

The Ministry of Petroleum and Natural Gas had objected to Vedanta's proposed demerger.

Capital markets regulator SEBI had earlier sought details on the proposed base metals carve-out. That particular carve-out is no longer part of the current plan, after Vedanta revised its original blueprint.

Vedanta demerger background

Initially, the company had outlined a plan to split into six independent entities: Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power, Vedanta Steel and Ferrous Materials, Vedanta Base Metals, and Vedanta Ltd. The revised scheme, however, retains the base metals business within the parent company.

The demerger was proposed to streamline operations, improve management focus, and unlock shareholder value.

In March 2025, the deadline for completing the demerger was extended to September 30, 2025, due to pending approvals from the NCLT and other government bodies.