Vedanta Limited has announced a Composite Scheme of Arrangement (Demerger)
This scheme involves the demerger of various business undertakings of Vedanta Limited into separate companies. The scheme has been approved by the Hon’ble National Company Law Tribunal (NCLT) Mumbai Bench.
Vedanta aims to simplify the company’s business structure, enable focused growth across individual segments, and enhance overall shareholder value through independent entities.
Here’s what it means for shareholders
Record Date: 1 May 2026
Exchange Ratio:
Eligible shareholders will receive shares in the following resulting companies:
- Vedanta Aluminium Metal Limited
- Talwandi Sabo Power Limited
- Malco Energy Limited
- Vedanta Iron and Steel Limited
1 fully paid-up equity share of each resulting company
for every 1 fully paid-up equity share held in Vedanta Limited
Example:
If you held 100 shares of Vedanta Limited as on the record date, you will receive:
- 100 shares of VAML
- 100 shares of TSPL
- 100 shares of MEL
- 100 shares of VISL
Your existing Vedanta shares will continue to remain in your account
Impact on Derivatives (F&O)
| Detail | Action / Impact | Effective Date |
|---|---|---|
| Margin & Collateral | Collateral margin haircut of 70% will apply on Vedanta positions. | Wednesday, 29 April 2026 |
| Early Expiry | All open Vedanta F&O contracts (26 May, 30 June & 28 July 2026) will expire early and be physically settled. | Wednesday, 29 April 2026 |
| New Position Restriction | Only VEDL Future Contracts will be allowed in MIS Product. | Wednesday, 29 April 2026 |
| Square-off Policy | Positions with insufficient margin or holdings may be squared off after 10 AM as per Dhan’s RMS policy. | Wednesday, 29 April 2026 |
| Fresh Contracts | New Vedanta F&O contracts (May, June & July expiries) will be introduced again post-demerger. | Thursday, 30 April 2026 |
Impact on MTF (Margin Trading Facility)
| Detail | Action / Impact | Effective Date |
|---|---|---|
| Trading Restriction | Fresh position in MTF will not be allowed. | Monday, 27 April 2026 to Wednesday, 29 April 2026 |
| Position Handling | All MTF positions will be closed or squared-off. | Wednesday, 29 April 2026 |
| Resume Normal Trading | Trading in Vedanta MTF will resume as usual. | Thursday, 30 April 2026 |
Special Pre-Open Session (SPOS)
A Special Pre-Open Call Auction will be conducted for Vedanta on Thursday, 30 April 2026 (9 AM – 10 AM) to determine the post-demerger opening price.
Based on the discovered price, new option strikes will be introduced - five in-the-money, one at-the-money, and five out-of-the-money.
The Clearing Corporation will announce the final settlement and price-adjustment methodology separately.
Note (for MTF holders): Maintain sufficient margin and funds to avoid forced closure before the cut-off date.
Refer to the official NSE circular here for complete details.
Post-demerger:
The shares of the resulting companies will be credited to eligible shareholders and are expected to be listed after completion of necessary formalities.
Until then, these shares will appear under the unlisted section of your demat account and will become tradable post listing.
Cost of Acquisition (COA):
The average buy price of your existing Vedanta holdings will be updated after the company announces the Cost of Acquisition (COA) post-demerger.