Vedanta Announces Record Date and Share Allotment Details for Demerger
Detailed Analysis
Vedanta Demerger: Board Approves Scheme, Sets Record Date
Vedanta Limited, a leading mining major led by Anil Agarwal, announced on Monday, 20 April, that its board has decided to make its demerger scheme effective from 1 May. The company also specified that in consultation with other entities involved, the Board has fixed 1 May as the record date for determining the shareholders eligible to receive consideration pursuant to the scheme.
As part of the demerger, Vedanta plans to separately list four companies: Vedanta Aluminium Metal Limited (VAML), Talwandi Sabo Power Limited (TSPL), Malco Energy Limited (MEL), and Vedanta Iron and Steel Limited (VISL). Under the composite scheme of arrangement, shareholders of Vedanta will receive equity shares in four businesses in a 1:1 ratio.
The scheme outlines the considerations for the demerger of Vedanta's various undertakings. For the aluminum undertaking, VAML shall issue one fully paid-up equity share for every one fully paid-up equity share of Vedanta. For the merchant power undertaking, TSPL shall issue one fully paid-up equity share for every one fully paid-up equity share of Vedanta. Similarly, for the demerger of the Oil and Gas undertaking, MEL shall issue one equity share for each fully paid-up share of Vedanta held by the shareholder. Lastly, as consideration for the demerger of the iron ore undertaking, VISL shall issue one fully paid-up equity share for every one fully paid-up equity share of Vedanta.
Vedanta further added that non-convertible debentures (NCDs) forming part of the aluminium undertaking for specific ISINs will be transferred to Vedanta Aluminium Metal, with 1 May 2026 set as the record date for determining eligible debenture holders. Additionally, Vedanta has approved the transfer of its shareholding in Bharat Aluminium Company Ltd (BALCO) to Vedanta Aluminium Metal Ltd.
According to the filing, BALCO's turnover for the year ended 31 March 2025 was ₹15,909 crore, constituting about 10% of the consolidated turnover of Vedanta. The net worth of BALCO was ₹12,088 crore, constituting 39% of the consolidated net worth of the company.
| Entity | Turnover (₹ crore) | Net Worth (₹ crore) | | --- | --- | --- | | Vedanta | - | - | | BALCO | 15,909 | 12,088 | | BALCO as % of Vedanta | 10% | 39% |
The agreement for the sale of shares between Vedanta and VAML is likely to be signed on or before 30 April 2026. VAML will issue its Compulsorily Convertible Debentures, which would not be less than the fair market value of BALCO, determined as per Rule 57 of Income Tax Rules, 2026, Vedanta added.
Following the implementation of the scheme, the names of Talwandi Sabo Power Limited and Malco Energy Limited will change to Vedanta Power Limited and Vedanta Oil and Gas Limited, respectively.
