Vedanta Limited’s board of directors, at its meeting held on April 20, 2026 between 4:00 PM and 5:00 PM IST, approved making its composite scheme of arrangement effective on May 1, 2026 and fixed May 1, 2026 as the record date for determining shareholders eligible to receive consideration under the scheme. The demerger will split Vedanta into four separate entities covering its aluminium, merchant power, oil and gas, and iron ore businesses.
The disclosure was filed under Regulations 30 and 42 of the SEBI Listing Regulations by Company Secretary and Compliance Officer Prerna Halwasiya.
The Four Demergers and Share Allotment Ratios
The composite scheme involves Vedanta Limited demerging four distinct business undertakings into four resulting companies, with each Vedanta shareholder receiving shares in all four entities on a one-for-one basis.
For the demerger of the Aluminium Undertaking, Vedanta Aluminium Metal Limited will issue one fully paid-up equity share of face value ₹1 for every one Vedanta share held. For the demerger of the Merchant Power Undertaking, Talwandi Sabo Power Limited will issue one fully paid-up equity share of face value ₹10 for every one Vedanta share of face value ₹1 held. For the demerger of the Oil and Gas Undertaking, Malco Energy Limited will issue one fully paid-up equity share of face value ₹1 for every one Vedanta share held. For the demerger of the Iron Ore Undertaking, Vedanta Iron and Steel Limited will issue one fully paid-up equity share of face value ₹1 for every one Vedanta share held.
All four allotments will be made to shareholders whose names appear on the register as of May 1, 2026 — the record date fixed by the board in consultation with all four resulting companies.
Name Changes for Two Resulting Companies
Upon effectiveness of the scheme, Talwandi Sabo Power Limited will be renamed Vedanta Power Limited and Malco Energy Limited will be renamed Vedanta Oil and Gas Limited, subject to approval by the Registrar of Companies. The renaming brings both entities under the Vedanta brand identity aligned with their respective business functions.
NCD Transfer to VAML
Four series of Non-Convertible Debentures currently on Vedanta Limited’s books — bearing ISINs INE205A07196, INE205A07220, INE205A08038 and INE205A08020 — form part of the Aluminium Undertaking and will be transferred to Vedanta Aluminium Metal Limited as part of the demerger. May 1, 2026 has also been fixed as the record date for determining debenture holders for this transfer.
BALCO Transfer to VAML — The Most Significant Additional Development
Beyond the four-way demerger, Vedanta’s board has separately approved the transfer of its shareholding in Bharat Aluminium Company Limited to Vedanta Aluminium Metal Limited. This is a significant addition to the demerger structure because BALCO is a material asset — its turnover for FY25 was ₹15,909 crore, constituting approximately 10% of Vedanta’s consolidated turnover for the year, and its net worth as of March 31, 2025 stood at ₹12,088 crore, representing 39% of Vedanta’s consolidated net worth.
The consideration for the BALCO transfer will be Compulsorily Convertible Debentures issued by VAML at a value not less than the fair market value of BALCO determined as per Rule 57 of the Income Tax Rules, 2026. The agreement for the share sale is expected to be signed on or before April 30, 2026, with completion on the same date — one day before the scheme’s effectiveness. The transaction constitutes a related party transaction as VAML is a wholly owned subsidiary of Vedanta, and the company has confirmed it is being executed at arm’s length.
What This Means for Vedanta Shareholders
A Vedanta shareholder holding shares as of May 1, 2026 will receive, in addition to their existing Vedanta shares, one share each in Vedanta Aluminium Metal Limited, Talwandi Sabo Power Limited (to be renamed Vedanta Power Limited), Malco Energy Limited (to be renamed Vedanta Oil and Gas Limited) and Vedanta Iron and Steel Limited. The post-demerger Vedanta entity will retain its remaining businesses while the four resulting companies operate as standalone listed or unlisted entities covering their respective sectors.
Disclaimer: This article is based on a regulatory filing and is for informational purposes only. It does not constitute investment advice. Readers are advised to consult a SEBI-registered financial advisor before making investment decisions.