Vedanta Limited, the mining giant led by Anil Agarwal, announced on April 20, 2026, that its board has approved making the demerger scheme effective from May 1, 2026. The same date is set as the record date to identify shareholders eligible for shares in the new entities, marking a major step in unlocking value from its diverse businesses.
Demerger Details: 1:1 Share Ratio Across Four Units
Under the composite scheme, Vedanta shareholders will receive one fully paid-up equity share in each of the four demerged companies for every Vedanta share they hold. Here’s the breakdown:
- Vedanta Aluminium Metal Limited (VAML): One ₹1 share for the aluminum business.
- Talwandi Sabo Power Limited (TSPL): One ₹10 share for merchant power assets.
- Malco Energy Limited (MEL): One ₹1 share for oil and gas operations.
- Vedanta Iron and Steel Limited (VISL): One ₹1 share for iron ore and steel.
This 1:1:1:1 ratio simplifies the process—no cash involved, just free shares boosting liquidity and focus for each pure-play entity.
BALCO Transfer to Boost Aluminum Arm
Vedanta also greenlit transferring its stake in Bharat Aluminium Company Ltd (BALCO) to VAML. BALCO generated ₹15,909 crore in turnover (10% of Vedanta’s consolidated FY25 total) and held ₹12,088 crore in net worth (39% of Vedanta’s). The share sale agreement is due by April 30, 2026, with VAML issuing Compulsorily Convertible Debentures at fair market value per Income Tax Rules, 2026.
What This Means for Shareholders
The move ends years of delays, creating standalone listed firms for aluminum, power, energy, and steel—while Vedanta retains base metals. Effective May 1 means eligible holders (as of record date) get automatic allotments post-regulatory nods. Expect listings soon after, potentially sparking trading buzz similar to recent Trent bonus hype. Track BSE filings for final timelines.