Guwahati: Vedanta Limited has approved key measures to operationalise its previously announced composite scheme of arrangement, marking a major milestone in the company’s strategic reorganisation process.
In a statement, the company said its Board of Directors has fixed May 1, 2026, as the effective date as well as the record date for the demerger to determine shareholders eligible to receive shares in the resulting entities.
According to Vedanta, the demerger is aimed at simplifying the corporate structure by creating sector-focused independent businesses and opening new opportunities for global investors, including sovereign wealth funds, retail investors and strategic investors.
The move is expected to provide direct investment opportunities in dedicated pure-play companies linked to India’s growth story through Vedanta’s asset portfolio.
The company stated that the restructuring would also enable individual business units to pursue their strategic priorities more effectively while aligning better with customers, investment cycles and end markets.
Under the approved share entitlement plan, eligible shareholders of Vedanta Limited will receive one equity share of Vedanta Aluminium Metal Limited with a face value of Rs 1 for every one Vedanta share held. They will also receive one equity share of Talwandi Sabo Power Limited, which will be renamed Vedanta Power Limited, with a face value of Rs 10 for every one Vedanta share held.
In addition, shareholders will receive one equity share of Malco Energy Limited, to be renamed Vedanta Oil & Gas Limited, with a face value of ?1 for every one Vedanta share held. One equity share of Vedanta Iron and Steel Limited, with a face value of Rs 1, will also be allotted for every one Vedanta share held.
The demerger will lead to the creation of four independent sector-focused entities spanning aluminium, power, oil and gas, and iron ore and steel. Vedanta said the restructuring would allow sharper operational focus and greater agility for each business, helping them respond more effectively to market cycles, customer needs and investment requirements.
The company further said the move would improve transparency and visibility of the performance of individual businesses, enabling markets to value each vertical more appropriately and unlocking embedded value for shareholders.