In a significant development for Vedanta Limited , the National Company Law Appellate Tribunal (NCLAT) has set aside an order that previously rejected the scheme of arrangement filed by Talwandi Sabo Power Limited (TSPL), a key subsidiary involved in Vedanta's restructuring plan. This decision marks a crucial step forward in Vedanta's corporate restructuring efforts.

Restructuring Scheme Details

The scheme in question involves Vedanta Limited and four resulting companies:

1. Vedanta Aluminium Metal Limited
2. Talwandi Sabo Power Limited
3. Malco Energy Limited
4. Vedanta Iron and Steel Limited

Settlement and NCLAT Decision

The reversal of the earlier rejection came after TSPL and Sepco Electric Power Construction Corporation reached an amicable settlement. Under the terms of this settlement:

• Sepco agreed not to participate in creditor meetings
• Sepco will withdraw any objections to the scheme
• Sepco has provided consent for the scheme's approval

In light of this settlement, the NCLAT has directed the lower tribunal to proceed with first motion applications and decide on convening meetings within a week from the receipt of the order.

LODR Disclosure

According to the Latest Operational and Disclosure Requirements (LODR) data filed by Vedanta Limited, the company had previously intimated the stock exchanges about the NCLT's rejection of the scheme. Following this, TSPL filed an appeal against the impugned order before the NCLAT.

The NCLAT order has now set aside the earlier rejection. Vedanta Limited's Company Secretary and Compliance Officer, Prerna Halwasiya, confirmed this development in a disclosure to the stock exchanges.

Implications and Next Steps

This favorable ruling from the NCLAT is expected to accelerate Vedanta's restructuring process. The lower tribunal is now tasked with deciding on the convening or dispensation of meetings related to the scheme within a week.

The successful implementation of this restructuring scheme could potentially streamline Vedanta's operations and create more focused entities in different business segments. However, the final outcome will depend on further regulatory approvals and stakeholder consent.

Investors and market watchers will be keenly observing the next steps in this corporate restructuring process, which could have significant implications for Vedanta Limited's future organizational structure and business strategy.

Vedanta Limited , a major player in the Indian mining and metals industry, has announced a significant development involving its subsidiary, Talwandi Sabo Power Limited (TSPL). The company has successfully reached a settlement agreement with SEPCO Electric Power Construction Corp, resolving all outstanding claims between the two parties and ending the ongoing arbitration proceedings.

Key Points of the Settlement

• Agreement Reached: TSPL, a subsidiary of Vedanta, has entered into a settlement agreement with SEPCO.
• Resolution of Claims: The settlement resolves all outstanding claims between TSPL and SEPCO.
• Arbitration Withdrawn: As a result of this agreement, the ongoing arbitration proceedings have been withdrawn.

Vedanta's Financial Performance and Stock Update

Despite this positive development, Vedanta Ltd shares closed at ₹454.40, nearly unchanged from a year ago. The company maintains its position as India's highest dividend-yielding private company with a 6.9% yield. Over the past year, the stock delivered 7.4% total returns solely due to dividends, having announced ₹23.00 per share for FY26 after paying ₹43.50 per share last year.

Since FY22, Vedanta has distributed ₹91,200.00 crore in dividends. In FY25, the company reported a net profit of ₹14,988.00 crore, a three-and-a-half-fold increase, on revenues of ₹1.5 lakh crore.

Ongoing Concerns and Recommendations

Despite strong financial performance, concerns persist over delays in Vedanta's proposed demerger into five entities and its acquisition of bankrupt Jaiprakash Associates. Brokerage Nuvama suggests the company should prioritize deleveraging over acquisitions.

Subsidiary Performance

Vedanta's subsidiary, Hindustan Zinc, has seen its shares fall 7.3% over the past year.

Conclusion

The settlement between Vedanta's TSPL and SEPCO demonstrates the company's commitment to resolving disputes and maintaining strong business relationships. By ending the arbitration process, both parties can now focus on their respective business operations without the burden of ongoing legal proceedings.

While this development is positive, Vedanta's stock performance remains subdued despite its high dividend yield. Investors and stakeholders will likely continue to monitor the company's progress on its proposed demerger and acquisition plans, as well as its overall financial strategy in the coming months.