Vedanta Share Price Hits All Time High After NCLT Approves Demerger

Vedanta Ltd. share price hit an all time high on Tuesday after the National Company Law Tribunal approved the demerger, paving the way for the splitting of the metals-to-oil conglomerate sector-specific entities across aluminium, oil and gas, power, and iron and steel.

Initially, the company had outlined a plan to split into six independent entities. The revised scheme, however, retains the base metals business within the parent company.

In March 2025, the deadline for completing the demerger was extended to September 30, 2025, due to pending approvals from the NCLT and other government bodies.

The demerger was proposed to streamline operations, improve management focus, and unlock shareholder value.

The Ministry of Petroleum and Natural Gas had cited concerns over the potential financial risks post-demerger of Vedanta and alleged misrepresentation of hydrocarbon assets and insufficient disclosure of liabilities by the metal and mining conglomerate. The ministry had told NCLT that it also wanted disclosures on the concealment of facts that include showing the exploration blocks as Vedanta's assets and details of the loan taken on the basis of those assets, among others.

Analysts at brokerage firm Nuvama said the NCLT approval to Vedanta demerger clears a major hurdle for the company and expect the process to be completed by the end of the current financial year ending March, 2026.

Commodity price tailwinds are expected to significantly boost earnings for the mining giant. The brokerage anticipates around a 25% quarter-on-quarter increase in December Ebitda, driven by higher prices of key commodities.

Analysts believes the current market price does not fully reflect the value of Vedanta’s zinc and aluminium businesses, while other residual businesses are practically available for free. Nuvama suggests that investors should not wait for the completion of the demerger process and recommends buying the stock now to capitalise on the upside potential.

Vedanta share price advanced 4% intraday to Rs 571.35 apiece after the news. The benchmark Nifty 50 was down 0.7%. The stock has risen 29% on a year-to-date basis.

The total traded volume so far in the day stood at three times its 30-day average. The relative strength index was at 51.

Ten out of the 14 analysts tracking Vedanta have a 'buy' rating on the stock and four recommend a 'hold', according to Bloomberg data. The average of 12-month analyst price targets is Rs 571.92, which implies a potential upside of 14%.