Mining major Vedanta Ltd on Friday said the Mumbai bench of the National Company Law Tribunal has asked the company to call for a meeting of its secured and unsecured creditors and shareholders in the next 90 days to discuss the proposed demerger.
The proposed demerger will create independent companies housing aluminium, oil and gas, power, steel and ferrous materials, and base metals businesses. The existing zinc and new incubated businesses will remain under Vedanta.
"A meeting of the equity shareholders... be convened and held within 90 days from the date of receipt of the order," said a two-member bench of the NCLT comprising Technical Member Madhu Sinha and Judicial Member Reeta Kohli in its order dated Nov. 21.
Vedanta Chairman Anil Agarwal had earlier said the proposed demerger of the company's diverse verticals that represent more than 15 commodities will see it progress from being asset managers to asset owners.
As the company passes through the transition phase, Vedanta is focusing on consolidating and strengthening its asset base to emerge as a world leader in each of its verticals, the chairman had said.
The diversified natural resources company had moved the NCLT seeking a demerger after receiving a nod from lenders and had expressed hopes of completing the process by the end of this fiscal year.
Vedanta had received approval from 75% of secured creditors for the proposed demerger of its businesses.
The demerger will help simplify the company's corporate structure by creating independent businesses. Moreover, it will offer global investors direct investment opportunities in pure-play companies linked to the country's impressive growth.
The demerger will allow the individual units to pursue strategic agendas more freely and better align with customers, investment cycles, and end markets.
From fiscal 2024 onwards, the company is investing $1.9 billion as growth capex across its businesses.
The company reported a consolidated net profit of Rs 4,352 crore in the September quarter. It had posted a consolidated net loss of Rs 1,783 crore in the year-ago period.
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