Khaitan & Co advises on Vedanta demerger into 4 entities

Khaitan & Co has advised on the implementation of the composite scheme of arrangement involving the demerger of Vedanta Limited into four companies — Vedanta Aluminium Metal Limited, Vedanta Power Limited (formerly Talwandi Sabo Power Limited), Vedanta Oil & Gas Limited (formerly Malco Energy Limited), and Vedanta Iron and Steel Limited.

The demerger was structured as a vertical split: for every one share of Vedanta Limited held on the record date of 1 May 2026, shareholders received one equity share in each of the four resulting companies. Consolidated debt of approximately ₹73,853 crore was apportioned across the resulting entities on the basis of their respective cash-generating capacities.

Khaitan & Co's mandate encompassed the full spectrum of the restructuring, including the listing of equity shares, secured and unsecured non-convertible debentures of Vedanta Aluminium Metal, and the equity shares of each of Vedanta Power, Vedanta Oil & Gas, and Vedanta Iron and Steel on the NSE and BSE. The Firm also advised on transition services, intra-group asset and/or share transfers, advisory services on transfer of regulated assets, advisory on the Vedanta ESOS Trust, etc.

The core team consisted of Haigreve Khaitan (Senior Partner), Mehul Shah (Partner), Anand Mehta (Partner), Vaibhav Mittal (Partner), Dipen Chatterjee (Partner), Manisha Shroff (Partner), Aman Yagnik (Partner) and Rushabh Gala (Counsel), with assistance from Mohit Nad (Counsel), Amit Panwar (Principal Associate), Keshav Tibarewalla (Senior Associate), Mayank Chaturvedi (Senior Associate), Mishi Malhotra (Senior Associate), Nikunj Mehta (Senior Associate), Mainak Pani (Associate), Aditi Swapnil Rathi (Associate) and Priyam Indurkhya (Associate).

The core team was further assisted by the following practices:

Corporate aspects: Saranya Mishra (Principal Associate), Hansaja Pandya (Senior Associate), Tirthesh Jain (Associate) and Anmol Sharma (Associate);

Regulatory aspects — Mining and Oil & Gas: Dibyanshu (Partner) and Ashish Jain (Senior Associate);

Real estate aspects: Gaurav Dasgupta (Partner) and Rusha Mitra (Partner);

Direct Tax and ESOP advisory: Hiten Kotak (Executive Director), Shabnam Shaikh (Partner), Pranav Doshi (Senior Associate), Ansha Bhagat (Associate) and Anupama Iyer (Associate).

The transaction represents one of the largest corporate restructuring exercises in Indian history, with a pre-demerger market capitalisation of approximately ₹2.82 lakh crore, an enterprise value of approximately ₹3.50 lakh crore, and a combined sum-of-the-parts target valuation of ₹936 per share.

Vedanta group's demerger has unlocked nearly ₹50,000 crore in market capitalisation on listing day.

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