Vedanta Ltd Approves Composite Scheme of Arrangement, Setting May 1, 2026, as Effective Date
Vedanta Ltd has announced key approvals for a comprehensive reorganization scheme involving four major undertakings. The Board of Directors held a meeting on April 20, 2026, and approved making the Scheme effective on May 1, 2026. Furthermore, the Board fixed May 1, 2026, as the record date for identifying eligible shareholders.The Scheme details consideration for the demerger of four key units: Aluminum, Merchant Power, Oil and Gas, and Iron Ore.
Consideration Ratios for Demerger
As part of the Scheme, the following consideration will be issued to eligible shareholders based on their holdings as of the record date:| Undertaking | Resulting Company | Consideration Ratio |
|---|---|---|
| Aluminum Undertaking | Vedanta Aluminium Metal Ltd (VAML) | 1 fully paid-up equity share of VAML (Face Value: INR 1) for every 1 fully paid-up equity share of Vedanta Ltd (Face Value: INR 1). |
| Merchant Power Undertaking | Talwandi Sabo Power Ltd (TSPL) | 1 fully paid-up equity share of TSPL (Face Value: INR 10) for every 1 fully paid-up equity share of Vedanta Ltd (Face Value: INR 1). |
| Oil and Gas Undertaking | Malco Energy Limited (MEL) | 1 fully paid-up equity share of MEL (Face Value: INR 1) for every 1 fully paid-up equity share of Vedanta Ltd (Face Value: INR 1). |
| Iron Ore Undertaking | Vedanta Iron and Steel Ltd (VISL) | 1 fully paid-up equity share of VISL (Face Value: INR 1) for every 1 fully paid-up equity share of Vedanta Ltd (Face Value: INR 1). |
Additional Corporate Changes
The Scheme mandates several changes beyond the demerger consideration. The Non-Convertible Debentures (NCDs) of the Company, bearing ISINs INE205A07196, INE205A07220, INE205A08038, and INE205A08020, which belong to the Aluminium Undertaking, will be transferred to VAML.The Board also approved future name changes for two entities upon the Scheme’s effectiveness. Talwandi Sabo Power Limited will change its name to Vedanta Power Limited, and Malco Energy Limited will change its name to Vedanta Oil and Gas Limited.
In addition to the demerger, the Company has approved the transfer of its entire shareholding in Bharat Aluminium Company Limited (BALCO) to VAML.
Details of BALCO Transfer
The transfer of shareholding in BALCO provides specific financial details for the overall reorganization. For the year ended March 31, 2025, BALCO reported a turnover of ₹ 15,909 Crores. This figure constitutes approximately 10% of the Company's consolidated turnover for the same year. Furthermore, BALCO's net worth as of March 31, 2025, was ₹ 12,088 Crores, representing 39% of the Company's consolidated net worth.Regarding the sale agreement between Vedanta Ltd and VAML, it is expected to be signed on or before April 30, 2026, with the completion of the sale or disposal anticipated on or before the same date. The consideration for this transaction will involve VAML issuing Compulsorily Convertible Debentures (CCDs), which are required to be no less than the fair market value of BALCO as determined per Rule 57 of Income Tax Rules, 2026. VAML is noted as the wholly owned subsidiary of the Company.
VEDL Stock Price Movement
Today, Vedanta Limited shares shed 2.22% today, settling at ₹771.00 in post-market trading. The stock saw significant activity throughout the session, with a total volume of 10.55 million shares traded.Source:
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