Vedanta Shares Hit New 52-Week High Ahead of 1:5 Demerger; Stock Jumps Nearly 3% on Jan 12

Shares of Vedanta Ltd surged on January 12, hitting a new 52-week high as investor sentiment rose ahead of the company's 1:5 Demerger.

Vedanta shares were trading at around Rs. 627, up Rs. 17.15 or 2.81% during the session. The stock has given returns of 15.34% over the past month and nearly 39.89% in the last six months.

NCLT Clears Vedanta's Major Restructuring Plan

The rally also comes after Vedanta announced that the National Company Law Tribunal (NCLT), Mumbai Bench, has sanctioned a Scheme of Arrangement involving several key subsidiaries. The tribunal's order approving the scheme was pronounced on January 9.

The restructuring involves Vedanta subsidiaries such as Talwandi Sabo Power Limited (TSPL), Vedanta Aluminium Metal Limited, Malco Energy Limited, Vedanta Base Metals Limited, and Vedanta Iron and Steel Limited. The scheme has been filed under Sections 230 to 232 of the Companies Act, 2013.

According to the company, the reorganisation is being done to separate Vedanta's diversified businesses into focused verticals, including aluminium, power, iron and steel, and base metals.

Talwandi Sabo Power to Take Over Merchant Power Business

According to the exchange filing dated 10th Jan, under the approved scheme, Talwandi Sabo Power Limited, a wholly owned subsidiary, will take over Vedanta's Merchant Power Undertaking.

"In furtherance to our earlier intimations dated September 16, 2025 and October 18, 2025 and in accordance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are pleased to inform you that the Hon'ble National Company Law Tribunal, Mumbai ("NCLT") has, vide its order dated January 09, 2026 (uploaded on the NCLT website on January 09, 2026 around 04:30 PM IST) ("Order"), allowed the above company petition filed by TSPL and granted sanction to the Scheme of Arrangement, presented with the said petition, between Vedanta Limited, Vedanta Aluminium Metal Limited, Talwandi Sabo Power Limited, Malco Energy Limited, and Vedanta Iron and Steel Limited and their respective shareholders and creditors under Section 230-232 and other applicable provisions of the Companies Act, 2013." the exchange filing noted.

Citi Maintains 'Buy' on Vedanta

Brokerage firm Citi has maintained a 'Buy' rating on Vedanta, with a target price of Rs. 585. According to Citi, Vedanta's businesses are currently trading at around 5x EV/EBITDA on a spot basis, showing a conglomerate discount. The demerger could help reduce this discount as individual businesses list and trade independently. Vedanta is targeting to complete the demerger by March 2026.

Disclaimer: The views and recommendations expressed are solely those of the individual analysts or entities and do not reflect the views of Goodreturns.in or Greynium Information Technologies Private Limited (together referred as "we"). We do not guarantee, endorse or take responsibility for the accuracy, completeness or reliability of any content, nor do we provide any investment advice or solicit the purchase or sale of securities. All information is provided for informational and educational purposes only and should be independently verified from licensed financial advisors before making any investment decisions.