Vedanta Limited Announces Cost Apportionment for Demerger of Key Business Units
Vedanta Limited has provided guidance to shareholders regarding the apportionment of the cost of acquisition of equity shares following a composite Scheme of Arrangement. The Scheme involves the demerger of key business units into four resulting companies.The arrangement was sanctioned by the Hon'ble National Company Law Tribunal, Mumbai Bench, via orders dated December 16, 2025, and January 09, 2026. The Scheme provides for the demerger, transfer, and vesting of the Aluminum Undertaking, Merchant Power Undertaking, Oil and Gas Undertaking, and Iron Ore Undertaking from Vedanta Limited into Vedanta Aluminium Metal Limited, Talwandi Sabo Power Limited, Malco Energy Limited, and Vedanta Iron and Steel Limited, respectively. These units are being transferred on a going concern basis.
The Scheme came into effect on May 01, 2026, which also serves as the Appointed Date. Under the terms of the Scheme, the Resulting Companies issued and allotted one fully paid-up equity share of each company for every one fully paid-up equity share held in Vedanta Limited, based on the records as of the Record Date, May 01, 2026.
For the purpose of determining the post-demerger cost of acquisition of the equity shares of the Company and the Resulting Companies, shareholders are advised to apportion their total cost of acquisition based on the net worth and net assets of the divested undertakings.
The apportionment ratio is detailed as follows:
| Company Name | Percentage of Total Cost of Acquisition of Equity Shares of the Company |
|---|---|
| Vedanta Limited | 52.34% |
| Vedanta Aluminium Metal Limited | 7.15% |
| Talwandi Sabo Power Limited | 12.23% |
| Malco Energy Limited | 21.49% |
| Vedanta Iron and Steel Limited | 6.79% |
The guidance notes that this communication is provided merely for shareholders' general information and is not intended to replace independent expert advice, as tax implications can vary in individual cases.
VEDL Stock Price Movement
Vedanta Limited shares slipped by 2.63% on Friday, closing the trading session at ₹331.05. The equity saw heavy activity, trading on 56.39 million shares and finishing well below its daily range of ₹325 to ₹338.90.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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