Vedanta's Bold Move: NCLT Greenlights Massive Buyout, Sending Shares to New Highs!

Vedanta Limited's stock price surged to a new 52-week high on Thursday, December 4th, following a significant regulatory approval. The National Company Law Tribunal (NCLT) Kolkata has given the green light for Vedanta's resolution plan to acquire Incab Industries Ltd. for ₹545 crore, signaling a major step in the conglomerate's expansion strategy.

Deal Details

• Vedanta will acquire 100% of the paid-up capital and management control of Incab Industries.
• The acquisition will be an all-upfront cash payment, funded entirely from Vedanta's internal accruals.
• The conglomerate plans to complete the acquisition within 90 days from the date of the resolution plan approval.

Strategic Rationale

• The acquisition is expected to bring significant vertical and downstream synergies for Vedanta, given that Incab Industries' key raw materials are copper and aluminum, core metals for Vedanta.
• The Pune manufacturing plant of Incab Industries is located strategically close, just 300 km from Vedanta's Silvassa copper unit, enhancing logistical efficiencies.
• This move will bolster Vedanta's growth in downstream copper and aluminum products and support its expansion in the infrastructure and transmission sectors.

Incab Industries Profile

• Incab Industries manufactures power cables and industrial wires, with copper and aluminum as its primary raw materials.
• The company operates from its head office in Kolkata and has two manufacturing plants located in Jamshedpur and Pune.
• These plants are currently non-operational. Vedanta plans to infuse capital expenditure and working capital to revive them.
• Incab's operational capacities include power cables (6,000 km), rubber and plastics (274 million core km), fibre optic cables (500 MCM), and winding wires (8,150 Mt). Its rod mill capacities are 12,000 TPA for copper and aluminum rods, and 5,580 TPA for wire mill.

Background and Timeline

• Incab Industries was admitted into insolvency proceedings on August 7, 2019.
• The committee of creditors had approved Vedanta's resolution plan on June 23, 2022.
• The plan then awaited approval from NCLT Kolkata, which was granted on December 3, 2025.

Stock Performance

• Vedanta Limited shares gained as much as 2% on Thursday, December 4, reaching a 52-week high.
• The stock was trading at ₹540.47, up 1.5%, during the day's trading session.
• Vedanta shares have seen a rise of over 20% year-to-date in 2025.

Impact

• This acquisition is poised to strengthen Vedanta's market position in the downstream metals and manufacturing sectors.
• Shareholders of Vedanta may benefit from the enhanced growth prospects and potential for increased profitability driven by synergies and operational revival.
• The revival of Incab's manufacturing plants could lead to job creation in the regions where they are located.
• Impact Rating: 8/10

Difficult Terms Explained

• National Company Law Tribunal (NCLT): A quasi-judicial body in India established to deal with corporate disputes and insolvency proceedings.
• Corporate Insolvency Resolution Process (CIRP): A process under the Insolvency and Bankruptcy Code (IBC) for resolving insolvency or bankruptcy of corporate entities.
• Insolvency and Bankruptcy Code (IBC), 2016: A law in India that consolidates and amends the laws relating to reorganization and insolvency resolution of corporate persons, partnership firms and individuals.
• TPA (Tonnes Per Annum): A unit of measurement indicating production capacity per year.
• MCM (Million Core Kilometres): A unit of measurement for cable capacity.
• Mt (Metric Ton): A standard unit for measuring weight, equivalent to 1,000 kilograms.