Vedanta Limited is navigating multiple regulatory and legal challenges. The company is currently reviewing a Supreme Court order and evaluating its legal options, while also addressing concerns raised by the Securities and Exchange Board of India (SEBI) regarding its demerger plan.

Supreme Court Order and Demerger Plan

Vedanta's spokesperson has stated that the company is reviewing a recent Supreme Court order and assessing its legal options. The company clarified that reports linking the Supreme Court's judgment to its demerger are misplaced. Vedanta plans to issue a corporate guarantee in favor of the Petroleum Ministry once the demerger scheme becomes effective through National Company Law Tribunal (NCLT) approval.

SEBI Warning on Demerger Plan

SEBI has issued an administrative warning to Vedanta, stating that modifications to its demerger plan are not allowed after the no-objection certificate (NOC) was granted. This comes after the government raised objections to Vedanta's demerger, claiming it would hinder the recovery of dues. Although SEBI and exchanges had previously approved the plan, the government pointed out that Vedanta made changes following this approval.

Impact on Vedanta

These legal and regulatory challenges may have significant implications for Vedanta Limited, one of India's leading diversified natural resources companies. The complications with the demerger plan and the ongoing legal proceedings could affect the company's financial planning and corporate strategy.

Other Corporate Updates

Tax Penalty for Subsidiary

Bharat Aluminium Company Limited (BALCO), a subsidiary of Vedanta, received a penalty order from the Income Tax Department for the Assessment Year 2012-13. The penalty amounts to Rs. 80.96 lakh under Section 271(1)(c) of the Income Tax Act, 1961.

Appeal Plans

BALCO intends to file an appeal with the Appellate Authority and a rectification application against the penalty order. The company is optimistic about a favorable outcome and does not expect the order to have any material financial impact.

Transfer of Shares to IEPF

Vedanta has issued a notice regarding the transfer of equity shares to the Investor Education and Protection Fund (IEPF). This transfer applies to shares with unclaimed dividends for seven consecutive years.

Investor Relations

Vedanta continues to maintain transparency with its shareholders. The company has published newspaper advertisements notifying the transfer of unclaimed shares to the IEPF and providing instructions for shareholders to claim their shares and dividends.

These recent developments highlight the ongoing legal and regulatory challenges faced by Vedanta Limited, as well as its efforts to comply with corporate governance standards and investor protection measures.

Vedanta Limited , a major player in the mining and metals sector, has announced its board will convene on August 21, 2025, to deliberate on a second interim dividend for the financial year 2025-26. This news comes on the heels of the company's recent first-quarter results, which paint a mixed picture of its financial health.

Dividend Considerations

The company has set August 27, 2025, as the record date for determining shareholder eligibility for the potential dividend. This move follows Vedanta's substantial dividend payout in the previous fiscal year, where it distributed ₹43.50 per share across four tranches.

Q1 Financial Performance

Vedanta's first-quarter results for FY2025-26 revealed some challenges:

Despite the decline in net profit, the company saw growth in revenue. The EBITDA remained unchanged, but margins contracted, indicating potential pressure on operational efficiency.

Debt Position and Business Segment Performance

Vedanta reported a total net debt of ₹58,220.00 crore, with a net debt-to-EBITDA ratio of 1.3 times. This figure suggests the company maintains a manageable debt level relative to its earnings.

On a positive note, key business segments including aluminium, oil and gas, and zinc international surpassed analyst expectations, demonstrating resilience in these core areas of operation.

Market Response

The market responded favorably to these developments, with Vedanta's shares closing up 1.82% at ₹438.10. This uptick suggests investor optimism about the company's dividend prospects and overall financial position.

Insider Trading Window Closure

In line with regulatory requirements, Vedanta has announced the closure of its trading window for designated persons from August 19, 2025, to August 23, 2025. This standard practice ensures fair trading around significant corporate events such as dividend declarations.

As Vedanta navigates through a challenging economic landscape, the potential second interim dividend could signal the company's commitment to shareholder returns. However, investors will be closely watching how the company balances these payouts with its operational performance and debt management in the coming quarters.