Shares of Vedanta tanked nearly 4% in intraday deals on Wednesday, September 17, amid reports that the government has doubled down on its argument against the Anil Agarwal-led company’s demerger plans during a hearing at the National Company Law Tribunal (NCLT) today.
According to a CNBC TV-18 report, the government has raised numerous objections to Vedanta’s demerger plans, ranging from financial risks post the demerger, insufficient disclosure of liabilities, misrepresentation of hydrocarbon assets, to violation of market regulator Sebi’s disclosure norms.
The report further added that the government has raised concerns that the demerged company, Malco Energy, might end up in liquidation, which would make it nearly impossible to recover the money it is owed.
Vedanta Demerger Plans
Vedanta Group plans to split its India operations into five separate, publicly listed companies — Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power, Vedanta Iron and Steel, and a restructured Vedanta Ltd, which will hold the zinc and silver businesses (via Hindustan Zinc) and serve as an incubator for new technologies and ventures.
The goal of the demerger is to unlock value, give investors more flexibility to invest in specific sectors, and enable each business to focus on its own growth strategy.
Vedanta Share Price
Vedanta, as part of its rebuttal, told the NCLT that all creditors and stakeholders have approved the demerger. The company also said it is willing to provide corporate guarantees to ensure the government’s dues are protected.
Amid these updates, Vedanta shares witnessed a sharp selloff and they hit the day’s low of ₹443.90, down 3.8%. However, the stock recouped some losses and was down 1.5% at ₹454 around 2.40 pm.
The large-cap metals and mining major has seen just 2% rise in its share price in 2025 so far. However, the scrip is up 92% in the last two years even as it has gained just 1% in a year.
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