The National Company Law Tribunal (NCLT) has granted approval for Vedanta 's power business demerger, removing the final regulatory obstacle for the mining conglomerate's ambitious restructuring plan. The Mumbai bench of the tribunal approved the demerger scheme filed by Talwandi Sabo Power Ltd. and Vedanta on Friday.

Settlement Clears Path for Approval

The tribunal's approval came after Talwandi Sabo Power Ltd. (TSPL) successfully resolved its dispute with China's Sepco Electric Power Construction Corp., a creditor that had previously objected to the demerger. The settlement addressed alleged non-payment of dues worth ₹1,251.00 crores, which had been a key impediment to the demerger process.

Talwandi Sabo Power operates in the power generation, transmission, and distribution sector, supplying electricity to state electricity boards, power utilities, generating companies, transmission companies, and distribution companies across India.

Comprehensive Demerger Structure

Under the revised demerger scheme, Vedanta has proposed spinning off four of its business segments into separate subsidiary companies, each planned for individual stock exchange listings. The base metals business will remain within the parent company structure.

Shareholder Benefits

The demerger structure offers specific advantages to existing shareholders:

• One share in each of the four new companies for every Vedanta share held
• Continued ownership in the parent entity
• Retained exposure to Hindustan Zinc Ltd. through the parent company's stake

Strategic Rationale and Market Response

Vedanta has positioned the demerger as a strategic initiative designed to streamline operations, enhance management focus, and unlock shareholder value across its diverse business portfolio. The restructuring aims to provide investors with direct exposure to individual business segments.

Analyst Sentiment

Market analysts maintain a positive outlook on Vedanta's prospects following the demerger approval. Among analysts tracked by Bloomberg with coverage on the stock:

• 10 analysts maintain 'Buy' ratings
• 4 analysts hold 'Hold' ratings
• No 'Sell' recommendations currently active

The strong analyst support reflects confidence in the demerger's potential to enhance value creation across Vedanta's business segments. The approval represents a significant step forward in the company's transformation strategy, positioning each business unit for focused growth and operational excellence.

Source: https://www.ndtvprofit.com/business/vedanta-demerger-moves-ahead-after-nclt-nod-for-talwandi-sabo-power

Vedanta Limited has provided clarification on the Delhi High Court proceedings regarding the government's refusal to extend the Production Sharing Contract for Block CB-OS/2, following a stock exchange query on recent media reports.

Background of Contract Extension Issue

The company had previously informed stock exchanges through a letter dated September 23, 2025, about receiving an intimation from the Ministry of Petroleum & Natural Gas on September 19, 2025, regarding their application for extension of the Production Sharing Contract. The ministry had communicated that the application for extension was not accepted, prompting the company to evaluate available resources to resolve the matter.

Court Proceedings Update

Following the government's decision, Vedanta filed a writ petition before the Delhi High Court challenging the refusal to extend the contract. The latest development shows significant progress in the legal proceedings:

Regulatory Compliance Statement

In its clarification to BSE Limited and National Stock Exchange of India Limited, Vedanta emphasized that the court proceedings did not meet the threshold of materiality under Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. The company reiterated its commitment to compliance with SEBI Listing Regulations and assured continued disclosure of all material information and price-sensitive events.

Current Status

The company has confirmed that as of the clarification date, there is no pending information or announcement that may have a bearing on the price or volume behavior of the company's scrip. The status quo directive from the Delhi High Court provides interim relief while the matter undergoes judicial review, with the government required to file its response to the court's notice.