Vedanta’s Demerger Enters Final Phase; 20 Lakh+ Retail Shareholders to Benefit
Chennai: Mining and natural resources major Vedanta Limited’s much-anticipated demerger, which will create five sector-specific entities, has entered its final phase. The Mumbai bench of the National Company Law Tribunal (NCLT) reserved its judgment in November, with a pronouncement expected later this month.
Proposed in September 2023, the demerger has faced delays due to court procedures, taking over two years to reach this stage. The restructuring is expected to unlock significant value for shareholders, supported by a rally in metal prices that has driven a nearly 20% year-to-date surge in Vedanta’s stock.
As of September 2025, Vedanta had 20,21,184 retail shareholders, collectively holding 44.63 crore shares, alongside nearly 25,000 Non-Resident Indians (NRIs) who together own 1.79 crore shares. The demerger is expected to benefit this large investor base by simplifying Vedanta’s corporate structure and creating sector-focused independent businesses.
Vedanta’s portfolio spans zinc, silver, lead, aluminium, chromium, copper, nickel, oil and gas, iron ore, steel, coal, and renewable energy. Under the demerger plan, each business unit will be spun off into independent “pure play” companies, enabling sharper management focus, tailored capital allocation, and niche growth strategies.
The demerger will follow a simple vertical split: for every one share of Vedanta Limited, shareholders will additionally receive one share of each demerged company. This structure will allow investors—ranging from sovereign wealth funds to retail investors—to directly invest in their preferred verticals, broadening the investor base for Vedanta’s assets.
Post-demerger, each entity will operate with self-driven management teams, providing flexibility to pursue strategic agendas aligned with customer needs, investment cycles, and market opportunities. Analysts expect the move to make it easier for investors to assess and value the distinct growth stories within Vedanta’s diverse businesses.
