Billionaire Anil Agarwal-led Vedanta has approved May 1, 2026, as the effective date for the demerger of its aluminium, merchant power, oil and gas and iron ore verticals into separate listed entities. As part of the demerger, Vedanta plans to separately list four entities - Vedanta Aluminium Metal Limited (VAML), Talwandi Sabo Power Ltd (TSPL), Malco Energy Ltd (MEL) and Vedanta Iron and Steel Limited (VISL).
According to the exchange filing, under the composite scheme of arrangement, shareholders of Vedanta will receive equity shares in four businesses in a 1:1 ratio.
“This is to inform you that the Board of Directors of the Company, at its meeting held on April 20, 2026, as part of the ongoing reorganisation process, has inter alia, approved the following: (i) To make the Scheme effective on May 1, 2026; and (ii) In consultation with VAML, TSPL, MEL and VISL, the Board has fixed May 1, 2026, as the record date for determining the shareholders eligible to receive consideration pursuant to the Scheme,” said Vedanta in a regulatory filing.
The mining major said that the demerger will help in simplifying the firm’s corporate structure with sector focussed independent businesses and provide opportunities to global investors, including sovereign wealth funds, retail investors and strategic investors, with direct investment opportunities in dedicated pure-play companies linked to India's remarkable growth story through Vedanta's world class assets.
As consideration for demerger of aluminum undertaking, VAML will issue and allot one fully paid-up equity share of VAML having a face value of Rs 1 each for every one fully paid-up equity share of Rs 1 each of Vedanta.The filing further said that for the merchant power undertaking, TSPL shall issue and allot one fully paid-up equity share of TSPL having a face value of Rs 10 each for every one fully paid-up equity share of Vedanta.
As far as the demerger of the oil and gas undertaking is concerned, MEL will issue one equity share of MEL of face value of Rs 1 each for each fully paid-up share of Vedanta held by the shareholder, the company said.
For the demerger of the iron ore undertaking, VISL will issue and allot one fully paid-up equity share of VISL with a face value of Rs 1 for every one fully paid-up equity share of Vedanta, it said. The company further said that non-convertible debentures (NCDs) forming part of the aluminium undertaking will be transferred to Vedanta Aluminium Metal, with May 1, 2026, set as the record date for determining eligible debenture holders.
Vedanta has also approved the transfer of its shareholding in Bharat Aluminium Company Ltd (BALCO) to Vedanta Aluminium Metal Ltd.
Further, following the implementation of the scheme, the names of Talwandi Sabo Power Ltd and Malco Energy Ltd will change to Vedanta Power Ltd and Vedanta Oil and Gas Ltd, respectively. Vedanta Ltd had earlier said that it has extended the deadline for its proposed demerger to June 30, as approvals from certain government authorities remain pending and are still being processed. The company had already shifted the original deadline for the proposed demerger from March 31, 2025 to September 30, 2025 and then to March 31, 2026.