Vedanta Demerger: All You Need To Know, Major Dates And Upcoming Meetings
The National Company Law Tribunal had earlier passed an order on Nov. 21, 2024, approving the Scheme of Arrangement between Vedanta and its newly-formed subsidiaries.
Vedanta Group has announced the demerger of its operations into multiple entities. This move, which follows disclosures made on Nov. 22, 2024, and Dec. 20, 2024, is set to create several independent companies, allowing shareholders and creditors to participate in an important series of meetings scheduled for Feb. 18, 2025.
The National Company Law Tribunal had earlier passed an order on Nov. 21, 2024, approving the Scheme of Arrangement between Vedanta (the demerged company) and its newly-formed subsidiaries, including Vedanta Aluminium Metal Ltd., Talwandi Sabo Power Ltd., Malco Energy Ltd., Vedanta Base Metals Ltd., and Vedanta Iron and Steel Ltd. The meetings will discuss the demerger process, allowing stakeholders to express their views and approve the restructuring.
Key Dates And Meeting Details:
Date: Tuesday, Feb. 18, 2025.
Equity Shareholders Meeting: 10:00 a.m.
Secured Creditors Meeting: 11:45 a.m.
Unsecured Creditors Meeting: 01:30 p.m.
These meetings will be conducted virtually via a video conference/other audio visual means facility, in compliance with the NCLT order. Shareholders and creditors will have the opportunity to attend the meetings remotely through the provided platforms.
What Will Be Discussed
The demerger plan aims to restructure the existing company into several distinct entities, each focused on different sectors, including aluminium, power, energy, and metals. Shareholders and creditors will be provided with the details of the new companies that will be created and how they will be affected by the restructuring.
While earlier plans to include Base Metals in the demerger have been revised, the updated scheme still involves multiple companies and addresses key issues of allocation and debt restructuring.
As per the NCLT’s directions, the notices for the meetings were circulated to shareholders and creditors on Jan. 17, 2025, ensuring that all involved parties are well-informed ahead of the proceedings.
This restructuring is part of Vedanta's broader strategy to streamline operations and enhance shareholder value, allowing each entity to pursue its respective growth opportunities more effectively.
How To Attend
Access the meetings through the provided VC/OAVM portals or links. Specific details and instructions will be shared closer to the meeting date to ensure seamless participation.
Voting Information
Cut-off dates for e-Voting:
Equity Shareholders: Feb. 11, 2025.
Secured Creditors: Sept. 30, 2024.
Unsecured Creditors: Sept. 30, 2024.
E-Voting Period:
Start: Feb. 13, 2025 at 09:00 AM IST.
End: Feb. 17, 2025 at 05:00 PM IST.
Voting Platform: www.evoting.nsdl.com
Vedanta Share Price In Green
The scrip rose as much as 2.02% before paring gains to trade 1.09% higher at Rs 459 apiece, as of 11:56 a.m. This compares to a 0.65% advance in the NSE Nifty 50.
It has risen 73.31% in the last 12 months. Total traded volume so far in the day stood at 0.41 times its 30-day average. The relative strength index was at 53.
Out of 15 analysts tracking the company, nine maintain a 'buy' rating, five recommend a 'hold' and one suggest 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target implies an upside of 13.9%.
