Vedanta demerger decks cleared after Mumbai NCLT approves plan; Stock surges

Shares of Vedanta Ltd. recovered from the day's low after the Mumbai bench of the Company Law Tribunal (NCLT) approved the demerger plan of the company, that was long in the works.

Vedanta had announced the demerger of the currently listed entity into six different entities, back in September 2023.

Initially, Vedanta had proposed the demerger of five key undertakings—Vedanta Aluminium Metal Ltd (VAML), Talwandi Sabo Power Limited (TSPL), Malco Energy Ltd (MEL), Vedanta Base Metals Ltd (VBML), and Vedanta Iron and Steel Ltd (VISL)—into separate entities to enhance value unlocking.

A few months later, the company had announced that it will not pursue the demerger for its Base Metals unit.

Shares of Vedanta have surged to the highs of the day, currently trading 3.4% higher at ₹568.