Vedanta’s 20 lakh+ retail shareholders to benefit as demerger enters final phase

 

Vedanta’s 20 lakh+ retail shareholders to benefit as demerger enters final phase

Chennai: 3rd December: Mining and natural resources major Vedanta’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 reserved its judgment in November, with a likely pronouncement in December 2025.

Proposed in September 2023, the demerger has been delayed by court-related procedures, taking over two years and now entering its final phase.

Vedanta Limited is one of India’s largest mining and natural resources companies. The demerger is likely to result in significant value creation for shareholders, as metal prices have rallied this year, driving a year-to-date surge of nearly 20% in the Vedanta stock.

As of September 2025, Vedanta has nearly 2021184 retail shareholders (resident individuals), who collectively hold almost 44.63 crore shares in the company. Vedanta also has investments by almost 25,000 Non-Residential Indians, who collectively hold 1.79 crore shares in the company.

Vedanta is a leading Indian natural resources company with a significant global footprint. It has proposed demerging its business units into independent “pure play” companies to unlock value and attract big-ticket investment for expansion and growth.

The company has an asset portfolio comprising zinc, silver, lead, aluminium, chromium, copper, nickel, oil and gas, a traditional ferrous vertical including iron ore and steel, and power, including coal and renewable energy.

After the demerger, each independent entity will have greater freedom to grow to its full potential and realize its true value through independent management, capital allocation, and niche growth strategies. It will also give global and Indian investors the possibility to invest in their preferred vertical, broadening the investor base for Vedanta assets.

The de-merger is planned to be a simple vertical split; for every one share of Vedanta Limited, the shareholders will additionally receive one share of each of the demerged companies.

The demerger will benefit Vedanta’s shareholders as it will simplify Vedanta’s corporate structure with sector-focused independent businesses. It will also provide 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.

Due to the demerger, each demerged company will have self-driven management teams, providing a platform for individual units to pursue strategic agendas more freely and better align with customers, investment cycles, and end markets. The demerger will also enable investors to value the growth stories within Vedanta’s businesses easily.