Vedanta Demerger Update: Holdings and Average Price Adjustment
As part of the Scheme of Arrangement approved by the NCLT, Vedanta Limited (VEDL) has undergone a demerger. Under this scheme, the following companies have been created:
- Vedanta Aluminium Metal Limited (VAML)
- Talwandi Sabo Power Limited (TSPL)
- Malco Energy Limited (MEL)
- Vedanta Iron and Steel Limited (VISL)
Eligible shareholders of Vedanta Limited have received shares of each resulting company in a 1:1 ratio for every Vedanta share held as of the record date.
Holdings and Average Price Adjustment
The acquisition cost of your Vedanta holdings has been apportioned across Vedanta Limited and the four resulting companies.
As a result:
- The average buy price of your existing Vedanta holdings has been revised.
- Average buy prices for the newly allotted shares have been calculated based on the prescribed cost allocation ratio.
- The overall value of your investment has been proportionately distributed across the five entities.
Cost Allocation Ratio
The cost of acquisition has been allocated as follows:
- Vedanta Limited (VEDL): 52.34%
- Vedanta Aluminium Metal Limited (VAML): 7.15%
- Talwandi Sabo Power Limited (TSPL): 12.23%
- Malco Energy Limited (MEL): 21.49%
- Vedanta Iron and Steel Limited (VISL): 6.79%
What This Means for You
The revised average prices and adjusted holdings will be reflected in your portfolio.
Please note that changes in the average buy price are a result of the demerger and the reallocation of acquisition cost across the demerged entities.
For more information, refer to this circular.