Summary:
The Mumbai bench of the National Company Law Tribunal (NCLT) approved Vedanta’s demerger plan on December 16, causing the mining conglomerate’s shares to rise up to 3%. The scheme aims to streamline operations, improve management focus, and unlock shareholder value.
Details:
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Vedanta had filed a scheme of arrangement covering Vedanta Aluminium Metal, Talwandi Sabo Power, Malco Energy, and Vedanta Iron & Steel, along with their shareholders and creditors.
Initially, Vedanta proposed splitting into six independent entities:
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Vedanta Aluminium
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Vedanta Oil & Gas
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Vedanta Power
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Vedanta Steel and Ferrous Materials
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Vedanta Base Metals
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Vedanta Ltd
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The revised scheme retains the base metals business within the parent company.
Key Points:
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NCLT approval received for the revised demerger plan
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Share price gains up to 3% post-announcement
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Objective: streamline operations, focus management, and enhance shareholder value