Please refer the enclosed intimation.
Awaiting price reaction for this filing.
Vedanta Limited informed stock exchanges that the National Company Law Appellate Tribunal (NCLAT) has granted an interim stay on the NCLT Mumbai's March 4, 2025 order that had rejected part of its demerger scheme. The stay is conditional on Vedanta furnishing a bank guarantee of approximately Rs. 1,245 crores to protect the interests of SEPCO Electric Power, a Chinese contractor that had objected to the scheme. The NCLT had rejected the demerger of Vedanta's power generation business into Talwandi Sabo Power Limited (TSPL) on grounds of non-disclosure of material facts, after SEPCO raised objections about being treated as a creditor. Vedanta argued that SEPCO's contract was terminated in February 2024 for non-completion of work and the debt was correctly written back. Three of the four business demergers under the composite scheme were already approved by NCLT on November 21, 2024. The next detailed hearing is scheduled for August 4, 2025.
This is a relief for Vedanta shareholders as the stay allows the demerger process to potentially proceed, but the Rs. 1,245 crore bank guarantee creates a contingent liability and the final outcome remains uncertain pending the August 4 hearing.