Vedanta’s demerger plan gets shareholder and creditor approval, reports say

Vedanta’s proposed demerger has reportedly received approval from its shareholders, secured creditors, and unsecured creditors in meetings convened on Tuesday, February 18. The scheme of arrangement involves the separation of Vedanta Limited into independent entities—Vedanta Aluminium Metal Limited, Talwandi Sabo Power Limited, Malco Energy Limited, and Vedanta Iron and Steel Limited.

Vedanta is said to have secured 83% creditor approval for its proposed demerger plan, surpassing the 75% threshold of lenders’ support required to move the proposal forward.

The equity shareholders’ meeting, chaired by Independent Director Dindayal Jalan, was held virtually at 10:00 am. The voting process was conducted electronically, with remote e-voting available between February 13 and February 17, followed by e-voting during the meeting. A similar process was followed for the secured and unsecured creditors’ meetings, held at 11:45 am and 1:30 pm, respectively.

In 2023, the Anil Agarwal-owned company announced plans to demerge its aluminium, oil & gas, power, steel & ferrous materials, base metals, and the existing listed entity. However, in December 2024, the company decided to exclude its base metals business from the demerger, citing ongoing efforts to explore alternative options for restarting the non-operational Tuticorin copper smelter.Under the demerger plan, Vedanta shareholders will receive one share of each newly formed entity for every share they hold in the listed company as of the record date.

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