Final hearing on Vedanta's demerger today; will there be any good news for investors?

News Topical, Digital Desk : Vedanta News Today: Shares of Anil Agarwal-led mining company Vedanta Limited will be in focus on Wednesday, October 8. Today is the final hearing in the National Company Law Tribunal (NCLT) regarding the company's proposed demerger.

The company has proposed to restructure its business into five independent units, covering the sectors of aluminum, oil and gas, power, steel and ferrous materials, and base metals.

In mid-September, Vedanta announced that SEPCO had withdrawn its intervention application. Following this, the Ministry of Petroleum and Natural Gas filed its objection with the NCLT. The company's legal representatives also provided necessary clarifications, after which a decision on the MoPNG objection was reserved. The final hearing on the plan is now scheduled for today. Previously, the company had resolved the pending dispute with SEPCO regarding its power business, leading to SEPCO withdrawing its arbitration claims. Vedanta announced on September 30 that the demerger deadline has now been extended to March 2026 following government approval. 

What will investors receive? According to Vedanta's restructuring plan, shareholders will be given one share of the demerged entity in exchange for every one share of the existing company. Vedanta shares remained stable at ₹471.9 at the start of trading on Wednesday. The company's stock has gained nearly 9% in the past month, marking its best monthly performance since March. Vedanta's demerger proposal is a move to transform the company's business into more focused and independent entities, thereby creating value for both investors and the company. The hearing in NCLT is considered important due to the uncertainty surrounding the process and the demand for approval.

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