Vedanta shares rise nearly 2% on 83% creditor approval for demerger plan

Vedanta shares advanced 1.6% to an intraday high of Rs 424.60 on the BSE on Wednesday after the company received 83% creditor approval for its proposed demerger, clearing a crucial hurdle in its restructuring plan.

The proposal required support from at least 75% of creditors by debt value to move forward. With this approval, Vedanta is set to proceed with splitting its businesses into independent entities, allowing each vertical to operate separately.

Initially, Vedanta planned to split into six distinct businesses but later revised the structure to create five separate entities: Vedanta Aluminium, Vedanta Oil and Gas, Vedanta Power, Vedanta Steel and Ferrous Materials, and Vedanta Ltd.


Shareholders will receive one share in each newly formed company for every Vedanta share they hold.

The company had already secured No Objection Certificates (NOCs) from BSE and NSE. The restructuring, approved by the board in September 2023, aims to streamline operations and enhance shareholder value by allowing each business to focus on its core sector without being tied to the larger conglomerate.

Shares of the company rose 56.75% and outperformed its sector by 44.94% in the past year. Meanwhile, in the last three years, the scrip has offered 14.89% returns. ACcording to Trendlyne, Vedanta has better one year returns than industry, sector, Sensex and Nifty50.