Vedanta shares rise as shareholders approve 5-unit demerger plan

Shares of billionaire Anil Agarwal-led Vedanta gained on Thursday after the metal and mining heavyweight received approval from its shareholders and creditors to go ahead with its demerger plan. Vedanta will be split off into five separate listed companies and the demerger process will be finalised by the first quarter of the financial year 2026.

Ending two sessions losing streak, Vedanta shares rose as much as 0.8% in opening trade to ₹412.60, while the market capitalisation rose to ₹1.6 lakh crore. In the past two sessions, the mining stock dropped nearly 7%, while it slided over 3% in the last one month. The counter lost 8% in the calendar year 2025 and nearly 12% in the past six months. In the last one year, the largecap stock has delivered a positive return of 55%.

At the time of reporting, shares of mining heavyweight were trading flat at ₹409.35, paring opening gains. Vedanta share price touched its 52-week high of ₹527 on December 16, 2024, and a 52-week low of ₹249.75 on March 13, 2024.

Shareholders approve demerger plan

Last week, Vedanta convened meetings with its shareholders, secured creditors, and unsecured creditors on February 18, and all of them approved demerger plan. This was confirmed in an exchange filing on February 20, which stated that demerger proposal was backed by 99.99% of shareholders, 99.59% and 99.95% of secured and unsecured creditors, respectively.

As part of the demerger plan, all entities will listed as separate companies on domestic bourses. The demerger is planned to be a simple vertical split, for every 1 share of Vedanta Ltd, the shareholders will additionally receive 1 share of each of the 5 newly listed companies. 

In September 2023, billionaire Anil Agarwal-led Vedanta had proposed to demerge its existing businesses into six independent entities, including Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power, Vedanta Steel & Ferrous Materials, Vedanta Base Metals, and the existing Vedanta Limited. However, it later decided to exclude the "Vedanta Base Metals" demerger, which means there would be five separate companies post demerger. 

The Vedanta Base Metals demerger was deferred amid report that the company is finding alternative avenues to restart the copper business at Thoothukudi, which is part of the base metals unit.

Raised ₹2,600 crore via NCDs

The committee of directors of the company last week also approved raising of ₹2,600 crore through issuance of non convertible debentures (NCDs). They approved allotment of 2,06,000 rupee-denominated unsecured, redeemable, rated, listed, non-convertible debentures of face value of ₹1 lakh each, it said in a BSE filing on February 20.

Adding to it, the company raised another ₹540 crore through allotment of 54,000 rupee-denominated unsecured, redeemable, rated, listed, non-convertible debentures of face value of ₹1 lakh each.

On February 11, the company's committee of directors had approved raising up to ₹3,000 crore through issuance of NCDs.

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