Vedanta share price falls nearly 3% as report suggests setback in demerger. Check details

Vedanta share price declined on Wednesday following a media report of multiple setbacks to the company’s demerger plan. Vedanta shares fell as much as 2.56% to ₹438.55 apiece on the BSE.

According to a report by business news channel CNBC TV-18, the National Company Law Tribunal (NCLT) has deferred hearing on the group’s proposed demerger to September 17, after the central government raised “serious objections.”

The government argued that the scheme involved concealment of key details, inflated revenues and concealed liabilities, which could impair the recovery of dues, CNBC-TV18 reported.

In parallel, the Securities and Exchange Board of India (SEBI) has flagged Vedanta for modifying its demerger scheme after receiving a No-Objection Certificate (NoC) from SEBI and stock exchanges. The regulator termed the move a “serious breach” of its master circular and issued an administrative warning to Vedanta, the report added.

Meanwhile, in another development, the Supreme Court (SC) has dismissed a plea by the Vedanta Group seeking additional compensation for its Punjab-based Talwandi Sabo Power project. The company had approached the apex court challenging the withdrawal of ‘deemed export’ benefits and sought higher compensation.

The Supreme Court upheld the Appellate Tribunal for Electricity’s (APTEL) order, ruling that Talwandi Sabo was never legitimately entitled to such benefits. This effectively closes the door on any additional financial relief from the project, the report said.

Earlier, the National Company Law Tribunal (NCLT) had also rejected the proposed demerger of Talwandi Sabo Power Ltd, a subsidiary of Vedanta. The SC ruling effectively closes the door on additional financial inflows from Talwandi Sabo, tightening the company’s legal and financial options.

At 1:05 PM, Vedanta share price was trading 2.40% lower at ₹439.30 apiece on the BSE.

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