&w=3840&q=100)
Vedanta shares fall 3% as Centre objects to demerger; NCLT defers hearing
At 1 PM, the company's stock was trading 2.3 per cent lower at ₹439.96 per share compared to the previous session's close of ₹450.2 on the NSE. In comparison, NSE Nifty50 was up 0.3 per cent at 24,056 levels. The market capitalisation of the company stood at ₹1.72 trillion. The stock has fallen around 17 per cent from the 52-week high of ₹526.95 touched on December 16, 2024.
According to a report by CNBC TV18, the deferral comes after serious objections raised by the central government, which said that the demerger could affect its ability to recover dues from the company.
During the NCLT proceedings, the government accused the company of hiding and failing to disclose key information regarding the demerger.
It also raised concerns around inflated revenues and concealed liabilities, adding that Vedanta modified its demerger plan following the receipt of a No Objection Certificate (NOC) from the Securities and Exchange Board of India (SEBI) and the stock exchanges.
Sebi confirmed that Vedanta altered the scheme after obtaining the NOC. The regulator termed the alteration as "serious breach" of the relevant master circular and issued an administrative warning to Vedanta, the report added.
In addition, the company has scheduled a board meeting on August 21 to consider and approve a second interim dividend for the financial year 2025-26 (FY26). The record date for the dividend has been fixed as August 27.
In September 2025, Vedanta announced its demerger plan to divide into four separate listed companies specialising in aluminium, oil and gas, power, and base metals. According to the company, the restructuring aims to enhance operational efficiency, simplify management, and maximise shareholder value.
However, the deadline for finalising the demerger was moved from March 2025 to September 30, 2025, due to pending approvals from the NCLT and other regulatory bodies.
About Vedanta
Incorporated in 1975, Vedanta, a subsidiary of Vedanta Resources, is a global natural resources and technology conglomerate. It has operations in India, South Africa, Liberia, and Namibia. The company has presence across various sectors, including Oil & Gas, Zinc-Lead-Silver, Aluminium, Iron Ore, Steel, Copper, Ferro Alloys, Power, Nickel, Semiconductor, and Glass. The company's primarily caters to industrial consumers in sectors such as automotive, steel, power generation, infrastructure, battery manufacturing and oil. It serves customers across India and over 130 countries globally.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
25 minutes ago
- Mint
Vedanta demerger: Govt's key objections range from loans taken against national assets to liquidity concerns
Mumbai: The ministry of petroleum and natural gas has raised over a dozen objections to the proposed demerger of Vedanta Ltd into five listed companies, saying it could hamper the recovery of dues to the government. The objections include concerns over the company raising foreign loans by offering national oil assets as collateral, said a person directly aware of the government's case. The ministry also objected to Vedanta withholding $578 million in payments to the government as part of the production-sharing agreement for India's largest onshore crude oil block in Rajasthan, which is operated by Vedanta subsidiary Cairn Oil & Gas. Vedanta had announced its plan to demerge into six separately listed entities back in September 2023, aiming to complete the process by March 2025. On Wednesday, the National Company Law Tribunal asked Vedanta to respond within four weeks after the petroleum ministry objected to the proposed demerger, which could be delayed beyond September 2025 due to pending regulatory approvals—particularly from the tribunal. The ministry's other concerns include the liquidity position of Malco Energy, which has revenue- and production-sharing agreements for oil and natural gas with the Indian government. Malco is set to become a part of Vedanta Oil & Gas after the demerger. The ministry made its observations during a hearing at the NCLT in Mumbai, where Vedanta's application for the demerger was heard. The arguments of Vedanta's counsel could not be heard in the court on Wednesday due to a paucity of time. The case is next listed for hearing on 17 September. A spokesperson for Vedanta said that since the matter was sub-judice, the company would not be able to comment. The company will be making its submissions before the NCLT. "The proposed demerger is a strategic step to unlock long-term value by creating sector-focused, pure-play businesses with independent management teams. The petition for sanction of the Scheme was heard by the Hon'ble NCLT on 20 August and the hearing will continue on 17 September. Notably, the NCLT has also observed that arguments in a matter of this scale and significance cannot be concluded in a single hearing and fixed the next date of hearing after discussions with all parties," the spokesperson said. To assuage the concerns of the government, Vedanta has offered to submit an affidavit that it will release the pledge against the national assets against which foreign debt to the tune of ₹1,500-2,000 crore was raised, the person cited earlier said. However, the ministry was not satisfied with the offer. Vedanta has also offered to provide corporate guarantees to the ministry from Vedanta Ltd against the dues of Vedanta Oil & Gas after the demerger. The government has rejected this offer as well. The Vedanta Ltd stock ended 0.3% higher on the BSE on Thursday at ₹446.8. It has gained over 110% since the day the demerger was first announced on 29 September 2023. The benchmark Sensex has gained just under 25% during this period. Rajasthan dispute While Vedanta has offered to assuage the concerns of the ministry with regard to its offshore loans and liquidity position, no such offer has been made regarding the $578 million dispute over the Rajasthan oil and gas block. The dispute dates back to 2020 over revenue-sharing from the block, which produces over a quarter of India's domestic crude oil. The Directorate General of Hydrocarbons disallowed the sharing of almost $1.2 billion of development costs that Vedanta incurred on the development of the block. The case went into arbitration and an Arbitration Tribunal ruled in favour of Vedanta in November 2023. The Indian government then challenged the decision in the Delhi High Court, where it is being heard. Vedanta, however, recognized a benefit of $ 578 million ( ₹4,761 crore) in revenue from operations in FY24 and adjusted it against its liabilities to the government under the production-sharing agreement. However, the government said the award should be lower and has claimed a sum of $224 million from the company. In the NCLT, the petroleum ministry has objected to the company unilaterally enforcing the award even though the amount is yet to be officially quantified by the adjudicating authority and the case is pending before the Delhi High Court. 'The Group is of the view that the GoI computation is prima-facie contrary to the Award including clarifications issued by the Tribunal," as per notes to Vedanta's latest annual earnings report. 'As the Parties are unable to agree on quantum of the calculations, the matter will be decided by the Tribunal in the quantum proceedings." Other objections These are only three of the more than dozen objections raised by the ministry against Vedanta's planned demerger. The ministry also red-flagged the company's decision to demerge into five companies instead of six after receiving the approval of the Securities and Exchange Board of India (Sebi) and the two main stock exchanges. On 13 August, Sebi issued an administrative warning to Vedanta for this breach. However, the market regulator's assent to the demerger stands, said a second person aware of the matter. A spokesperson for Vedanta told Mint on Wednesday that Sebi has offered no further comments on the merits of the demerger scheme in the NCLT. Following the demerger, the five firms will be Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power, Vedanta Iron and Steel and Vedanta Ltd, which will continue as the parent entity and hold shares of Hindustan Zinc. Shareholders of Vedanta will receive one share in each of the new companies.
&w=3840&q=100)
Business Standard
9 hours ago
- Business Standard
Gem Aromatics' ₹451 cr IPO subscribed 30.27 times at ₹309-325 price band
The initial public offer of speciality ingredients manufacturer Gem Aromatics Ltd got subscribed 30.27 times on the last day of share sale on Thursday. The IPO received bids for 29,61,15,202 shares against 97,82,363 shares on offer, as per NSE data. Qualified Institutional Buyers (QIBs) part got subscribed 55.28 times, while the category for non-institutional investors received 45.06 times subscription. The quota for Retail Individual Investors (RIIs) fetched 10.31 times subscription. Gem Aromatics on Monday mobilised over ₹135 crore from anchor investors. The price band has been fixed at ₹309 to ₹325 per share. The IPO is a mix of fresh issue of equity shares worth up to ₹175 crore and an offer for sale (OFS) of up to 8.5 million shares valued at ₹276.25 crore. Proceeds from the fresh issue will be used by Gem Aromatics for debt repayment and general corporate purposes. Gem Aromatics is a manufacturer of speciality ingredients, including essential oils, aroma chemicals, and value-added derivatives, with over two decades of experience. Its client portfolio includes names like Colgate-Palmolive, Dabur, Patanjali, SH Kelkar, Rossari Biotech, and Symrise. The company operates three advanced manufacturing facilities in Uttar Pradesh, Dadra and Nagar Haveli, and Gujarat. Motilal Oswal Investment Advisors is the sole book-running lead manager to the offer.
&w=3840&q=100)
Business Standard
10 hours ago
- Business Standard
Vedanta approves ₹6,256 cr interim dividend; VRL to get ₹3,503 cr
Vedanta Ltd's board on Thursday approved a second interim dividend of ₹16 a share, handing its unlisted London-based parent Vedanta Resources Ltd (VRL) another crucial cash lifeline as it works to pare down debt. The total payout amounts to about ₹6,256 crore for FY26, the company said in an exchange filing. Of this, about 56 per cent—roughly ₹3,503 crore—will flow to Vedanta Resources, which owns the controlling stake in the Mumbai-listed miner. The record date for the dividend has been set as 27 August 2025. Vedanta has a history of large shareholder returns, with frequent interim dividends helping funnel capital upstream to its debt-laden parent. Vedanta Resources, controlled by billionaire Anil Agarwal, has been under pressure to service borrowings, including dollar bonds, after multiple rounds of refinancing. The latest payout underscores how India's biggest natural resources group continues to rely on steady cash generation from its zinc, aluminium, oil and power businesses to support the parent's balance sheet. The company has come under attack from short-seller Viceroy Research, which said Vedanta's dividends have consistently exceeded its free cash flows, with the Anil Agarwal-owned company resorting to working capital management, debt, and asset sales to meet VRL's needs. The shortfall, Viceroy argued, is consistently made up with borrowings.
