Vedanta Group Stocks Jump on Demerger Plan: What the Split Means

A similar attempt in 2023 to spin off the aluminium business failed to get NCLT approval. This time, the company is splitting the entire metals and mining stack into separate pure-play vehicles, a move that could unlock value by letting each business trade at its own valuation multiple, analysts said. Vedanta's current structure bundles high-margin zinc with lower-margin steel and power, making it harder for investors to price each segment.

The board also approved a ₹1,500 crore investment in the aluminium unit to expand smelting capacity, the company said in a regulatory filing. The power business, which includes a 1,980 MW plant in Jharsuguda, will be housed in a separate entity with its own debt.

Vedanta Ltd's consolidated net debt stood at ₹56,000 crore as of March. The demerger is expected to reduce the parent's leverage by transferring a portion of the debt to the new units, according to the company's internal estimates. No timeline for the NCLT hearing has been set.