Vedanta Ltd witnessed a 2.37% surge in its stock price, reaching an intraday high of ₹457.25, after the National Company Law Appellate Tribunal (NCLAT) granted interim relief for its demerger plan. The ruling temporarily stays the National Company Law Tribunal (NCLT) order, which had earlier rejected Vedanta’s restructuring proposal.
Key Developments in the Case
- The NCLAT’s May 27 ruling provides Vedanta with temporary relief, allowing the company to proceed with its strategic reorganization.
- The Mumbai bench of NCLT had dismissed the demerger plan on March 4, 2025, citing concerns over disclosures and creditor objections.
- Vedanta’s restructuring aims to split its business into five distinct listed entities, including Vedanta Aluminium Metal, Vedanta Power, Vedanta Oil & Gas, and Vedanta Iron & Steel.
Stock Market Reaction & Investor Sentiment
Following the NCLAT’s decision, Vedanta shares closed 1.15% higher at ₹451.80, reflecting positive investor sentiment. The company has already secured shareholder and creditor approvals for the demerger and remains committed to unlocking long-term value.
Future Outlook & Regulatory Challenges
While the interim relief allows Vedanta to move forward, the final verdict on the demerger plan is still pending. The company must fulfill specific conditions set by NCLAT, including addressing concerns raised by creditors and regulatory bodies.
With India’s corporate landscape evolving, Vedanta’s strategic restructuring could set a precedent for large-scale business reorganizations, attracting global investors and sector-focused stakeholders.
