Mumbai: Vedanta Ltd., the Anil Agarwal-led mining and metals conglomerate, enters a critical week as two key developments set the stage for potential market movement and strategic milestones. The company has successfully resolved a long-standing dispute with SEPCO Electric Power Construction Corporation, clearing a major bottleneck in its ongoing demerger process, while an upcoming NCLT hearing could determine the future trajectory of the corporate restructuring.
Vedanta announced that SEPCO has withdrawn its arbitration claims related to engineering, procurement, and construction (EPC) contracts for the 3x660 MW Talwandi Sabo thermal power project, effectively removing the need for a National Company Law Tribunal (NCLT) hearing on the matter. The financial terms of the settlement were not disclosed. According to Vedanta’s filing with stock exchanges, the agreement represents a “full and final resolution of all claims and counterclaims, including withdrawal of pending arbitration proceedings,” paving the way for smoother execution of the demerger.
The resolution addresses a major hurdle that had delayed Vedanta’s plan to split into five independent listed entities focused on aluminium, base metals, iron and steel, oil and gas, and power generation. Originally, the demerger was expected to conclude by March 2025, but procedural delays and disputes, including objections raised by the Ministry of Petroleum and Natural Gas (MoPNG), shifted the timeline to end-September.
The upcoming NCLT hearing on September 17 now assumes heightened importance. The Mumbai bench had previously deferred the session after the ministry raised concerns, and the outcome will be instrumental in determining the final path for Vedanta’s demerger. The company’s plan, approved by its board in September 2023, has already secured approvals from secured and unsecured creditors, as well as equity shareholders, signaling strong institutional support for the restructuring.
Market sentiment has reacted positively to the resolution with SEPCO. Shares of Vedanta Ltd. closed Friday at ₹450.95, gaining 3.05%, though the stock remains up just 1.5% year-to-date. Investors will be closely monitoring the NCLT proceedings this week, as the twin triggers the SEPCO settlement and the critical tribunal hearing could influence both share price momentum and the overall pace of Vedanta’s demerger.
The week ahead could thus prove decisive, not only for Vedanta’s corporate strategy but also for shareholder value, as the company positions itself for a streamlined structure across its diversified businesses and enhanced market clarity.