Vedanta Share Price Hits Fresh All-Time High After NCLT Approves Demerger Plan; What Shareholders Will Get?

Shares of mining major Vedanta continued their strong rally on Wednesday, extending gains for the seventh straight trading session after the National Company Law Tribunal (NCLT) approved the company's long-awaited demerger plan. The stock rose during the session to hit a fresh all-time high of Rs 580.45 per share, taking the cumulative gain over the past seven sessions to around 13.5 percent.

Vedanta Demerger Plan Approved By NCLT: 5 New Shares on 1 Soon

The sustained buying interest follows regulatory clearance for Vedanta's plan to split into five separately listed entities. In a regulatory filing, the company said the NCLT, through an order dated December 16, approved the Scheme of Arrangement, subject to compliance with certain directions.

This approval clears a major hurdle for the demerger, although the process will still require additional regulatory clearances and shareholder approvals before it is fully implemented.

Vedanta had first announced its demerger proposal in 2023, outlining plans to unlock value by separating its diverse businesses into focused, independently listed companies.

Under the plan, the group will create five entities - Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power, Vedanta Iron and Steel and a restructured Vedanta Ltd. The restructured parent company will house the zinc and silver businesses through its stake in Hindustan Zinc and will also function as an incubator for new technologies and future ventures.

Vedanta Share Price Today After Demerger Plan Approval

Vedanta Ltd shares were trading almost flat in afternoon trade on Wednesday, December 17. On the NSE, the stock was quoted at Rs 568.90 around 1:42 pm, down marginally by Rs 0.60 or 0.11 per cent from the previous close. The counter began the day on a strong note at Rs 580.00 and touched an intraday high of Rs 580.45, which also stands as its 52-week high.

However, some selling pressure emerged at higher levels, pulling the stock down to an intraday low of Rs 566.10. Despite the mild intraday dip, Vedanta shares continue to trade near record levels, significantly above their 52-week low of Rs 363.00, highlighting the stock's strong performance over the past year.

Demerger Impact on Vedanta Shareholders?

The company has assured shareholders that the demerger will not dilute their ownership. Existing Vedanta shareholders will receive equity shares in each of the newly listed companies in proportion to their current holdings, in addition to retaining their shares in Vedanta Ltd. This structure is aimed at ensuring continuity for investors while allowing each business vertical to pursue growth strategies tailored to its sector.

Should You Buy, Hold or Sell Vedanta Stock?

Brokerages have also turned optimistic on the stock following the NCLT approval. According to a Nuvama Research report dated November 20, the demerger is expected to unlock value by improving the standalone valuations of Vedanta's aluminium, steel and power businesses. The brokerage has pegged a fair value of Rs 686 per share for Vedanta and said this could rise by an additional Rs 84 per share once the demerger comes into effect, assuming all other factors remain unchanged.

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