Mining major Vedanta on Monday informed the exchanges that its board has fixed May 1 as the date to split the company into five units.
As part of the demerger, Vedanta's aluminium, power, oil and iron business arms will be spun-off into separate listed entities. The existing shareholders will be eligible to receive an equal number of shares in each of the demerged entities.
The move is aimed at unlocking value, improving operational efficiencies, and allowing each business to pursue independent growth strategies aligned with its sector dynamics.
Under the demerger scheme, existing shareholders of Vedanta will receive one share in each of the newly created entities for every one share held in the parent company. Specifically, investors will be allotted one share each in Vedanta Aluminium Metal Ltd (VAML), Talwandi Sabo Power Ltd (TSPL), Malco Energy Ltd (MEL), and Vedanta Iron and Steel Ltd (VISL).
The restructuring marks one of the most significant corporate overhauls in India's natural resources sector in recent years.
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The restructuring is part of the group's broader effort to simplify its business structure and support debt reduction.
The demerger had received approval from the National Company Law Tribunal in December 2025, clearing the way for the oil-to-metals conglomerate to proceed with the split. The move was first proposed in 2023 and had faced delays amid concerns over its impact on debt recovery.
Under the restructuring plan, Vedanta's businesses will be reorganised into five separate entities. Vedanta Ltd will continue to hold the base metals business, while the other businesses will operate through Vedanta Aluminium, Talwandi Sabo Power, Vedanta Steel and Iron, and Malco Energy.
In a related development, the company also announced that its stake in Bharat Aluminium Company Ltd (BALCO) will be transferred to Vedanta Aluminium Metal Ltd as part of the reorganisation, consolidating its aluminium operations under a single entity.
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