<b>Khaitan & Co advises on Vedanta's landmark four-way demerger-one of India's largest corporate restructurings with ₹3.50 lakh crore enterprise value-creating four independent listed pure-play entities across aluminium, power, oil & gas, and steel.</b>
Vedanta Limited's board formally approved implementation of the composite scheme on 20 April 2026, setting 1 May 2026 as the effective and record date for determining eligible shareholders. The demerger created four resulting companies via vertical split: for every one Vedanta share held on record date, shareholders received one equity share each in Vedanta Aluminium Metal Limited, Talwandi Sabo Power Limited, Malco Energy Limited, and Vedanta Iron and Steel Limited. Consolidated debt of approximately ₹73,853 crore was apportioned across resulting entities on the basis of their respective cash-generating capacities. The scheme was approved by the National Company Law Tribunal, Mumbai…
Why it mattersDemerger as vertical split with proportionate debt allocation by cash-generating capacity (not equal split) sets precedent for complex multi-subsidiary restructurings; NCLT sanction required settlement of contractual disputes (SEPCO arbitration with Talwandi Sabo Power) before final approval-critical sequencing issue for multi-creditor schemes.
CounselKhaitan & Co
SectorMetals & Mining
Value₹2.82 lakh crore (pre-demerger market cap); ₹3.50 lakh crore (enterprise value)
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Sources
- Bar & Bench - Dealstreet
- Lawbeat (Khaitan & Co Deal Beat)
- Vedanta Resources Limited Press Release · official
- Moneylife
- Business Standard
- Vedanta Aluminium Metal Limited Press Release (vedantaaluminium.com) · official
- Business Today (Listing Coverage, 15 Jun 2026)
- Lawbeat (24law.in NCLT Summary)
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