Vedanta shares in focus as NCLT defers demerger hearing, SC dismisses plea

Shares of Vedanta Ltd are set to be in focus on Thursday after the National Company Law Tribunal (NCLT) deferred a crucial hearing on the company’s proposed five-way demerger and the Supreme Court rejected its compensation plea in a separate case, delivering a double blow to the mining and resources major.

On Wednesday, Vedanta shares fell nearly 3% after reports that the tribunal postponed its hearing on the demerger to September 17 after the central government raised objections, accusing Vedanta of concealing information, inflating revenues, and hiding liabilities.

Reports said that government representatives also alleged that Vedanta altered significant elements of its scheme after obtaining No Objection Certificates from the Securities and Exchange Board of India (Sebi) and stock exchanges.


Vedanta, in an August 14 filing, acknowledged that Sebi had issued a warning letter a day earlier over non-compliance tied to the modification of the demerger scheme without prior consent. “The company has been advised to exercise caution in the future and forward the board’s comments to Sebi on satisfaction of corrective actions undertaken to ensure future compliance,” the filing stated.

Separately, the Supreme Court dismissed Vedanta’s plea for additional compensation in connection with its Punjab-based Talwandi Sabo Power project. The company had sought higher payouts after the withdrawal of ‘deemed export’ benefits under the mega power policy, but the apex court rejected the claim.

Reports said the petroleum ministry has also flagged concerns over disputed dues that may fall on Cairn India, depending on the outcome of ongoing arbitration. Cairn India was acquired by Vedanta Resources Plc in 2011 and later merged into Vedanta Ltd.

Q1 earnings

The setbacks come against a mixed financial backdrop. Vedanta’s consolidated net profit fell 11.7% year-on-year in the June quarter to Rs 3,185 crore, compared with Rs 3,606 crore a year earlier. Sequentially, profit attributable to owners dropped 8.5% to Rs 3,483 crore.

Revenue from operations, however, climbed 5.75% to Rs 37,824 crore from Rs 35,764 crore in the same period last year.

Also read | Vedanta shares slip 3% after reports of govt objection to demerger, Sebi's warning

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