Vedanta Ltd, led by Anil Agarwal, has extended the deadline for its planned demerger to March 31, 2026, pushing it back from the previously revised deadline of September 30, 2025. The company cited pending approvals from the National Company Law Tribunal (NCLT) and various governmental authorities as the primary reason for the extension. This strategic move aims to allow the company sufficient time to secure all necessary clearances before proceeding with the complex restructuring.
The demerger, initially slated for completion by March 31, 2025, has faced several delays due to the intricate nature of the approvals process. The scheme of arrangement is being carried out under Sections 230-232 of the Companies Act, 2013, subject to approvals from shareholders, creditors, regulators and the NCLT. In a regulatory filing, Vedanta stated that the conditions precedent to the scheme are still being completed, necessitating the deadline extension.
The restructuring plan envisions splitting Vedanta Ltd into four independent companies:
- Vedanta Aluminium Metal Ltd
- Talwandi Sabo Power Ltd (TSPL)
- Malco Energy Ltd
- Vedanta Iron and Steel Ltd
Vedanta has clarified that if any part of the scheme becomes unworkable due to non-fulfilment of conditions, other parts of the scheme would continue to remain valid and enforceable.
The company believes that the demerger will unlock greater value for shareholders by creating focused, standalone entities, allowing each business vertical to pursue its own strategic priorities and growth opportunities. The separation is expected to streamline operations and enhance value creation for all stakeholders.
In September 2025, Vedanta received a boost when the National Company Law Appellate Tribunal (NCLAT) permitted TSPL's separation, overturning a previous ruling that had temporarily stalled the process. This clearance followed a settlement between TSPL and Sepco Electric Power Construction Corp, a Chinese contractor, regarding outstanding dues.
The NCLT had deferred a hearing on Vedanta's demerger proposal to October 8, due to objections from the Ministry of Petroleum and Natural Gas, which cited a lack of necessary disclosures.
Vedanta had initially planned to structure its existing businesses into six independent companies, including Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power, Vedanta Steel and Ferrous Materials, Vedanta Base Metals, and Vedanta Ltd. However, the company later revised its plan, opting to retain its base metals business within the parent company.
Despite the delay in the demerger timeline, Vedanta successfully completed a $500 million bond offering, which was oversubscribed three times, indicating strong investor confidence in the company's prospects.
