Vedanta outlines cost apportionment for demerged entities post-scheme approval

Business Desk — Sat, 16 May 2026 07:03:35 +0000

Vedanta Limited has announced the apportionment of the cost of acquisition of its equity shares following the demerger sanctioned by the National Company Law Tribunal, Mumbai Bench. The scheme, effective from 1 May 2026, involves the demerger of several undertakings into newly formed entities.

The tribunal’s orders, dated 16 December 2025 and 9 January 2026, approved the demerger, transfer, and vesting of the Aluminium, Merchant Power, Oil and Gas, and Iron Ore undertakings into Vedanta Aluminium Metal Limited, Talwandi Sabo Power Limited, Malco Energy Limited, and Vedanta Iron and Steel Limited, respectively. As part of the arrangement, shareholders of Vedanta Limited have been allotted one fully paid-up equity share in each resulting company for every share they hold in Vedanta Limited, as recorded on 1 May 2026.

To determine the post-demerger cost of acquisition, shareholders can apportion their total acquisition cost of Vedanta Limited shares as follows: 52.34% to Vedanta Limited, 7.15% to Vedanta Aluminium Metal Limited, 12.23% to Talwandi Sabo Power Limited, 21.49% to Malco Energy Limited, and 6.79% to Vedanta Iron and Steel Limited. This allocation is based on the net worth of Vedanta Limited and the net assets of the respective undertakings.

The company advises shareholders to seek independent tax advice to understand the specific implications of these changes, as the guidance provided is for general informational purposes only. Regulatory or judicial authorities may have differing interpretations, and Vedanta Limited disclaims any responsibility for the guidance provided.

Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).

Malco Energy Limited | Business Upturn

Vedanta outlines cost apportionment for demerged entities post-scheme approval