Mining giant Vedanta Ltd. has set May 1, 2026, as the record date for its much-anticipated demerger. The company confirmed that its board has approved the effectiveness of the scheme from the same date, paving the way for shareholders to receive stakes in four newly carved-out businesses. Under the approved arrangement, existing shareholders will be allotted equity shares across four separate entities in proportion to their current holdings.
These shares will include Vedanta Aluminium Metal Ltd, Talwandi Sabo Power Ltd, Malco Energy Ltd, and Vedanta Iron and Steel Ltd.
The company has detailed how shares will be distributed across the demerged entities. For the aluminium business, shareholders will receive one equity share of Rs 1 each in Vedanta Aluminium Metal Ltd for every share held in Vedanta. Similarly, the power arm, Talwandi Sabo Power Ltd, will issue one equity share of Rs 10 for every Vedanta share.
In the oil and gas segment, Malco Energy Ltd will issue one equity share of Rs 1 for each share held, while Vedanta Iron and Steel Ltd will follow the same one-to-one share allotment ratio. Additionally, non-convertible debentures tied to the aluminium division will be transferred to Vedanta Aluminium Metal Ltd, with the same record date determining eligible debenture holders.
BALCO Transfer And Structural Realignment
As part of the broader restructuring, Vedanta will transfer its stake in Bharat Aluminium Company Ltd to Vedanta Aluminium Metal Ltd. BALCO remains a significant contributor, accounting for roughly 10 per cent of Vedanta’s consolidated turnover and nearly 39 per cent of its net worth as of FY25.
The transfer agreement is expected to be executed by April 30, 2026, with completion targeted within the same timeline. The transaction will involve the issuance of compulsorily convertible debentures by Vedanta Aluminium Metal Ltd, aligned with fair market value norms under applicable tax rules. The company clarified that the deal qualifies as a related party transaction but will be conducted on an arm’s length basis.
Post-demerger, Talwandi Sabo Power Ltd and Malco Energy Ltd are set to be rebranded as Vedanta Power Ltd and Vedanta Oil and Gas Ltd, respectively, subject to regulatory clearances.
