Following the successful demerger of its industrial undertakings, Vedanta Limited has provided guidance for shareholders regarding the apportionment of the cost of acquisition for their equity shares. This follows the May 1, 2026, effective date, where shareholders received equity shares in the newly formed entities. The company has outlined specific percentage ratios for tax purposes, ensuring clarity on how the original investment cost should now be distributed across the demerged company and its subsidiaries.
Understanding Your Cost Allocation
With the May 1, 2026, effective date marking the formal demerger of the Aluminum, Merchant Power, Oil and Gas, and Iron Ore undertakings, shareholders are required to re-evaluate their cost of acquisition. Under the approved scheme, investors received 1 fully paid-up equity share in each of the four resulting companies for every share held in the parent entity.
Apportionment Ratios
To assist with accurate tax reporting and investment tracking, the company has released the following cost of acquisition breakdown for the entities involved:
- Vedanta Limited: 52.34%
- Vedanta Aluminium Metal Limited: 7.15%
- Talwandi Sabo Power Limited: 12.23%
- Malco Energy Limited: 21.49%
- Vedanta Iron and Steel Limited: 6.79%
Important Considerations for Shareholders
This apportionment is based on the relative net worth of the respective undertakings as required by current tax guidelines. While this data serves as a formal guide, shareholders are strongly encouraged to consult with their personal tax advisors to understand the implications for their specific portfolios. Please note that these figures are provided for general guidance and may be subject to review by relevant financial authorities.
Source: BSE
