Vedanta Demerger: Anil Agarwal-led conglomerate extends demerger deadline to THIS date over pending NCLT, govt approvals | Stock Market News
Source: Live Mint
Vedanta Demerger: Vedanta Ltd. has extended the deadline to complete its planned demerger from March 31 to September 30, citing pending approvals from the National Company Law Tribunal (NCLT) and other government authorities, the company informed in an exchange filing on Friday, March 28.
According to billionaire industrialist Anil Agarwal-led metals-to-mining conglomerate, the decision was made under Clause 39.7 of the demerger scheme, which allows the board and the boards of its resulting entities to extend the implementation timeline if regulatory approvals are delayed.
Vedanta Demerger deadline extended; here’s why
“Given that the conditions precedent in the Scheme, including approval of the NCLT and approvals from certain government authorities, are in the process of being completed, the Board and the resulting companies, in the exercise of their powers under clause 39.7 of the Scheme have decided to extend the timeline for fulfilment of the conditions precedent from March 31 to September 30, 2025,” said Vedanta in a regulatory filing to the exchanges.
Earlier this month, Mint reported that NCLT dismissed the demerger scheme filed by Talwandi Sabo Power Ltd (TSPL) at an initial state in a setback for the five-way spinoff of its parent Vedanta Ltd. The tribunal’s Mumbai bench, comprising judicial member Reeta Kohli and technical member Madhu Sinha, ruled that TSPL’s proposed demerger scheme of arrangement lacked the necessary disclosures, specifically regarding the company’s debt obligations.
SEPCO Electric Power Construction Corporation (Sepco), a creditor of TSPL, had raised objection to the scheme, claiming that the power unit had deliberately excluded their outstanding debt of ₹1,251 crore from the list of creditors. The tribunal deemed non-compliant with legal requirements.
Vedanta Demerger Plan and Rationale
The five newly formed entities post-demerger will include:
Vedanta Aluminium – One of the largest aluminum producers globally.
Vedanta Oil & Gas – India’s leading private-sector crude oil producer.
Vedanta Power – A major player in the power generation sector.
Vedanta Iron and Steel – Specializing in the ferrous products industry.
Vedanta Ltd. – Continuing as the parent entity, housing the silver and zinc businesses while incubating emerging ventures, including technology.
