In a key development that moves Vedanta Limited closer to executing one of India’s largest corporate reorganizations, the Securities and Exchange Board of India (SEBI) has approved the documentation for the company’s proposed demerger plan. The market regulator’s clearance marks a crucial milestone in Vedanta’s ongoing effort to simplify its sprawling business structure and unlock shareholder value across diverse verticals.
The approval, granted after months of scrutiny, comes as Vedanta aims to separate its operations into multiple independently listed entities. These are expected to include businesses in aluminium, oil and gas, power, base metals, and semiconductors, each designed to operate with greater autonomy and sectoral focus. The plan reflects the company’s long-term strategy to streamline governance, attract specialized investors, and sharpen operational efficiency within each business vertical.
With SEBI’s nod, the focus now shifts to the National Company Law Tribunal (NCLT), where the next round of hearings is currently underway. The regulator is expected to formally submit its application as part of the ongoing proceedings. The NCLT’s verdict will be instrumental in determining the timeline and structure for the demerger, which has already seen multiple revisions over the past year.
Industry experts say SEBI’s approval brings much-needed regulatory clarity to a process that has been closely tracked by investors and creditors alike. Vedanta’s restructuring journey has faced delays and legal hurdles, including the need for multiple shareholder and creditor approvals. The latest development, therefore, signals renewed momentum and regulatory alignment for the company’s ambitious restructuring exercise.
Vedanta, led by billionaire industrialist Anil Agarwal, has maintained that the demerger will enable sharper business focus and better capital allocation. By creating separately listed entities, the group aims to unlock value that is currently trapped within a complex conglomerate structure. Analysts believe the plan could help improve transparency and investor confidence while offering clearer benchmarks for valuation across businesses that operate in distinctly different sectors.
The timing of the regulatory approval is also significant. Over the past few months, Vedanta Resources — the London-based parent company, has taken steps to ease liquidity pressure and refinance upcoming debt maturities. In October, it successfully raised $500 million through a bond issuance, helping extend its average debt maturity to over four years and lowering interest costs to single digits. The move reassured investors about the company’s ability to manage its balance sheet while pursuing structural reforms.
Meanwhile, Vedanta’s stock has seen steady movement in recent trading sessions. The company’s shares have gained nearly 6% over the past week, supported by strong aluminium prices on the London Metal Exchange and optimism around its proposed investment plans in Odisha. These include a ₹1 lakh crore capital expenditure programme and the setting up of new aluminium parks, which are expected to create over one lakh jobs in the state.
Market analysts note that Vedanta’s performance in its latest quarterly results reflects a mixed picture. The company reported a 5.75% year-on-year rise in consolidated revenue to ₹37,824 crore for Q1 FY26, with its EBITDA touching a record ₹10,746 crore, the highest ever for a first quarter. However, net profit declined 11.7% to ₹3,185 crore due to global commodity volatility and cost pressures. Still, the healthy operational margins and cash flow generation provide a strong foundation for the demerger process ahead.
The SEBI approval now places the ball firmly in the NCLT’s court. Once the tribunal gives its clearance, Vedanta will begin implementing the demerger scheme, which is expected to be completed in phases through FY26. The restructuring is likely to redefine the company’s corporate identity, transitioning it from a diversified conglomerate into a collection of focused, independently governed businesses, a model increasingly favored by global investors.
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