Mumbai: Vedanta Limited today announced that its Board of Directors has approved key steps to operationalize its previously announced composite scheme of arrangement, marking a significant milestone in the company’s ongoing strategic reorganization.
The Board has fixed 1st May, 2026 as the effective date and record date for demerger to determine shareholders eligible to receive shares in the resulting entities under the demerger.
A significant step, the demerger will help in simplifying Vedanta’s corporate structure with sector focussed independent businesses and provide opportunities to global investors, including sovereign wealth funds, retail investors and strategic investors, with direct investment opportunities in dedicated pure-play companies linked to India’s remarkable growth story through Vedanta’s world class assets. It will also provide a platform for individual units to pursue strategic agendas more freely and better align with customers, investment cycles and end markets.
Share Entitlement Details
Eligible shareholders of Vedanta Limited will receive shares in the resulting companies as per the following ratios:
- Vedanta Aluminium Metal Limited (VAML):
1 equity share (₹1 face value) for every 1 Vedanta share held - Talwandi Sabo Power Limited (to be renamed Vedanta Power Limited):
1 equity share (₹10 face value) for every 1 Vedanta share held - Malco Energy Limited (to be renamed Vedanta Oil & Gas Limited):
1 equity share (₹1 face value) for every 1 Vedanta share held - Vedanta Iron and Steel Limited (VISL):
1 equity share (₹1 face value) for every 1 Vedanta share held
Key Highlights of the Reorganization:
The demerger will result in the creation of four independent, sector-focused entities across aluminium, power, oil & gas, and iron ore & steel. Talwandi Sabo Power Limited and Malco Energy Limited will be rebranded to Vedanta Power and Vedanta Oil & Gas respectively, to reflect their sectoral focus.
The demerger will allow sharper operational focus and agility, helping the demerged businesses align more closely with their respective market cycles, customer requirements and investment needs. It will also enhance the visibility of individual business performance, making it easier for markets to appropriately value each vertical, thereby unlocking embedded value.
