Vedanta Clears Arbitration Hurdle, All Eyes on NCLT Demerger Hearing This Week

Vedanta shares rose 2% on Monday after its wholly owned subsidiary Talwandi Sabo Power (TSPL) settled a long-standing dispute with the Chinese firm, SEPCO Electric Power Construction Corporation.

In a regulatory filing on the BSE on Friday, the company stated that it had reached an agreement on disputes related to the EPC contracts for setting up a 3x660 MW Thermal Power Project. 

Post this agreement, SEPCO has withdrawn its arbitration claims, clearing a legal obstacle for Vedanta. 

The other news development that traders and investors will be tracking is Vedanta’s demerger, which is now expected by the end of September, a revision from the initial March target. 

Last month, the National Company Law Tribunal (NCLT) deferred the hearing on the proposed demerger to September 17 after the government raised some concerns over the demerger. Additionally, the market regulator was still verifying Vedanta's compliance with applicable regulatory norms.

Vedanta’s Ambitious Demerger Plans

The Anil-Agarwal-led mining conglomerate is looking to split the group into five sector-focused listed companies, but execution has faced hurdles, and deadlines have been postponed multiple times. The demerger was first announced in September 2023. Each Vedanta shareholder will receive one share of each newly listed entity for every share held in Vedanta.

The  Ministry of Petroleum and Natural Gas has raised concerns about concealed information and undisclosed liabilities relating to the oil and gas business. Meanwhile, the Securities and Exchange Board of India (SEBI) warned Vedanta over modifications made after initial approvals and demanded corrective measures. 

The upcoming NCLT hearing this week will be a key development to track for this stock. 

Technical Call 

SEBI-registered analyst Financial Sarthis flagged a breakout in Vedanta, adding that a decisive close above ₹452 could set the stage for a major breakout attempt towards all-time highs.

What Is The Retail Mood?

Data on Stocktwits shows that retail sentiment moved from ‘neutral’ to ‘bearish’ a day ago on this counter. 

Vedanta shares have risen only 3% so far this year.

For updates and corrections, email newsroom[at]stocktwits[dot]com.