Khaitan & Co has advised on the implementation of Vedanta Limited's historic demerger into four independently listed companies, marking one of the largest corporate restructuring exercises in Indian history.
The transaction involved the demerger of Vedanta Limited's business verticals into Vedanta Aluminium Metal Limited, Vedanta Power Limited, Vedanta Oil & Gas Limited, and Vedanta Iron and Steel Limited. The restructuring was carried out under a Composite Scheme of Arrangement approved under Sections 230–232 of the Companies Act, 2013. [1]
Under the approved scheme, shareholders of Vedanta Limited received one equity share in each of the four resulting companies for every one share held in Vedanta Limited as of the record date, May 1, 2026. The newly created entities commenced trading on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) on June 15, 2026. [1][2]
The demerger represents a significant strategic shift for the Vedanta Group, allowing each business segment to operate independently and pursue sector-specific growth opportunities. Industry observers view the restructuring as a move aimed at improving operational efficiency, enhancing transparency, and unlocking value for shareholders. [3][4]
Khaitan & Co's mandate covered the full spectrum of legal and regulatory aspects of the transaction, including the implementation of the demerger scheme, listing of the resulting entities, allocation of debt obligations, transition services arrangements, intra-group asset transfers, and regulatory compliance matters. The firm also advised on employee stock option-related issues and transfers of regulated assets. [1]
The transaction involved the apportionment of approximately ₹73,853 crore of consolidated debt among the resulting entities based on their respective cash-generating capacities. Prior to the demerger, Vedanta had a market capitalization of approximately ₹2.82 lakh crore, making the transaction one of the most significant restructuring exercises undertaken in India's corporate sector. [1][5]
The successful completion and listing of the demerged entities are expected to provide investors with greater visibility into the performance of individual business verticals while enabling management teams to focus on sector-specific strategies and capital allocation decisions. [3][4]
Sources:
[1] Khaitan & Co Announcement
[2] Bar & Bench
[3] Economic Times
[4] Reuters
[5] ETEnergyWorld