Vedanta Limited has announced that its board has officially set May 1, 2026, as the record date for its multi-business demerger. The reorganization will see the company spin off its Aluminum, Merchant Power, Oil and Gas, and Iron Ore undertakings into separate entities. Shareholders will receive equity shares in the resulting companies as per the defined ratios, marking a major milestone in the firm’s ongoing restructuring efforts to unlock value across its specialized divisions.
Strategic Business Demerger
Following a board meeting held on April 20, 2026, Vedanta Limited confirmed the timeline for its comprehensive reorganisation. The scheme is set to become effective on May 1, 2026. As part of this transition, the company’s diverse business segments will operate as independent entities, allowing for more focused management and strategic growth.
Shareholder Entitlements
Eligible shareholders as of the record date will receive equity shares in the newly formed entities based on the following allocation ratios:
- Aluminum Undertaking: 1 fully paid-up share of Vedanta Aluminium Metal Limited (VAML) for every 1 share held in Vedanta Limited.
- Merchant Power Undertaking: 1 fully paid-up share of Talwandi Sabo Power Limited (to be renamed Vedanta Power Limited) for every 1 share held in Vedanta Limited.
- Oil and Gas Undertaking: 1 fully paid-up share of Malco Energy Limited (to be renamed Vedanta Oil and Gas Limited) for every 1 share held in Vedanta Limited.
- Iron Ore Undertaking: 1 fully paid-up share of Vedanta Iron and Steel Limited (VISL) for every 1 share held in Vedanta Limited.
Additional Reorganization Measures
Alongside the demerger, the company is streamlining its subsidiary structure. Non-convertible debentures associated with the Aluminum segment will be transferred to VAML. Furthermore, the company has approved the transfer of its shareholding in Bharat Aluminium Company Limited (BALCO) to VAML. BALCO, which reported a turnover of ₹15,909 Crores—representing approximately 10% of the company’s consolidated turnover for the fiscal year ended March 31, 2025—will be integrated under the new aluminum structure to optimize operational synergies.
Source: BSE
