Vedanta demerger: Anil Agarwal-led mining major, Vedanta Limited, on Monday, 20 April, announced that its board has decided to make its demerger scheme effective from 1 May.
The company also added that in consultation with other entities involved, the Board has fixed the same as the record date for determining the shareholders eligible to receive consideration pursuant to the scheme.
As part of the demerger, Vedanta plans to separately list four companies — Vedanta Aluminium Metal Limited (VAML), Talwandi Sabo Power Limited (TSPL), Malco Energy Limited (MEL) and Vedanta Iron and Steel Limited (VISL).
Vedanta Demerger: Scheme of Arrangement
According to the exchange filing, under the composite scheme of arrangement, shareholders of Vedanta will receive equity shares in four businesses in a 1:1 ratio.
As consideration for demerger of aluminum undertaking, VAML shall issue and allot one fully paid-up equity share of VAML having a face value of ₹1 each for every one fully paid-up equity share of ₹1 each of Vedanta.
For the merchant power undertaking, TSPL shall issue and allot one fully paid-up equity share of TSPL having a face value of ₹10 each for every one fully paid-up equity share of Vedanta.
Similarly, for the demerger of the Oil and Gas undertaking, MEL shall issue one equity share of MEL of face value of ₹1 each for each fully paid-up share of Vedanta held by the shareholder.
And lastly, as consideration for the demerger of the iron ore undertaking, VISL shall issue and allot one fully paid-up equity share of VISL with a face value of ₹1 for every one fully paid-up equity share of Vedanta.
