Shares of Vedanta Ltd shot up 2% on Thursday, 27 May 2025, after the National Company Law Appellate Tribunal (NCLAT) granted an interim stay on an earlier order by the National Company Law Tribunal (NCLT) that had rejected Vedanta’s revised five-way demerger plan.

Originally, Vedanta had proposed in September 2023 to split into six separately listed companies. However, the company revised the plan earlier this year to create five entities, deferring the demerger of its base metals business. 

Earlier in February, the company announced that shareholders and both secured and unsecured creditors had approved the revised demerger with a 99.99% majority.

Under the new plan, the company will split into five entities: 

• Vedanta 
• Vedanta Aluminium Metal 
• Talwandi Sabo Power Limited (TSPL) 
• Malco Energy 
• Vedanta Iron and Steel

However, in March, the NCLT rejected the demerger scheme filed by TSPL after Chinese creditor SEPCO Electric Power Construction Corporation raised objections. SEPCO alleged that TSPL deliberately excluded Rs 1,251 crore of outstanding debt from the creditor list and concealed critical liability information.

The Mumbai bench of NCLT stated it found grounds to reject the scheme under Section 230 of the Companies Act, leading to the current legal battle and the temporary relief granted by the NCLAT.

At 3:30 pm, the shares of Vedanta were trading 1.14% higher at Rs 451.95 on NSE.

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