Vedanta Demerger Delayed Again as NCLT Reconstitutes Bench, New Hearing Set for November 12

Commodities

29th October 2025, 9:56 AM

Vedanta Demerger Delayed Again as NCLT Reconstitutes Bench, New Hearing Set for November 12

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Stocks Mentioned :

Vedanta Limited

Short Description :

Vedanta Limited's much-anticipated demerger plan has faced another postponement due to the reconstitution of the National Company Law Tribunal (NCLT) bench handling the case. The new bench will re-hear the matter starting November 12. While the Securities and Exchange Board of India (SEBI) has approved Vedanta's revised scheme after an initial warning, the repeated delays have tempered initial stock gains. Vedanta shares are currently trading higher but off their peak.

Detailed Coverage :

The corporate restructuring plan for Anil Agarwal-led Vedanta Limited, involving a demerger, has encountered further delays. The National Company Law Tribunal (NCLT) bench that was adjudicating the demerger scheme has been reconstituted, meaning its members have been changed. This necessitates the tribunal to restart the hearing process for Vedanta's proposal and the government's objections. Vedanta has requested an expedited rehearing, and the NCLT has scheduled the proceedings to commence on November 12. Previously, the Securities and Exchange Board of India (SEBI) had issued a warning letter concerning the demerger but has since granted approval to Vedanta's modified scheme. Vedanta stated that SEBI issued a reprimand but ultimately accepted the revised plan.

Impact: This recurring delay in the demerger process can lead to investor uncertainty and potentially affect Vedanta's stock performance. Shares of Vedanta had initially surged up to 4% following reports of SEBI's approval for the demerger. However, the latest news of the hearing's postponement has caused the stock to retreat from its day's highs. It is currently trading up by 1.5% at ₹509.35. The stock had recently surpassed the ₹500 mark for the first time in 2025. Continued delays could exert further downward pressure on the stock. Rating: 6.

Difficult Terms: * **Demerger**: A corporate action where a company splits into two or more independent entities, allowing each to focus on specific business lines. * **National Company Law Tribunal (NCLT)**: A quasi-judicial body in India tasked with resolving disputes and adjudicating matters related to companies. * **Reconstituted**: When a committee, board, or tribunal is restructured with new members or a new composition. * **Scheme of Arrangement**: A formal proposal outlining how a company plans to reorganize its capital structure or operations, often requiring court or regulatory approval. * **Securities and Exchange Board of India (SEBI)**: India's primary regulator for the securities market, responsible for investor protection and market development. * **Wrap on the knuckles**: A mild rebuke or warning.