The demerger that was supposed to unlock value has been delayed again and again. First it was March 2025, then pushed to September 30, and now even that looks shaky.
Even Vedanta CEO Deshnee Naidoo has only said she is focusing on restricting at the moment and it will be done by the end of this financial year (FY26), but there’s no guarantee, that sounds like hopefully it can be down by April 2026. That’s a red flag. If they themselves are not confident, how can we be?
And let’s not forget the JAL acquisition. Spending ₹17,000 crore to buy Jaiprakash Associates, a company with no synergy to their core business? CreditSights has already called it a credit negative move. It exposes Vedanta to volatile sectors like real estate and cement, which is not their strength at all. Vedanta’s cement business has a negative net asset value. Why take such a big risk when your balance sheet is already so stretched?
Now, the biggest bombshell, a PIL has been filed in the Supreme Court by a long-term shareholder over a massive $500 million brand fee being paid by Indian subsidiaries to the parent company. This is serious. The PIL claims this is draining shareholder value and could violate SEBI’s LODR rules. SEBI and RBI have been asked to investigate. If this gets admitted and regulators step in, the demerger could be blocked altogether.
Any more delays or regulatory hurdles will be seen as negative by both equity and credit analysts. And if SEBI or RBI starts probing, the whole demerger could collapse. I only showing concern and urge everyone to be cautious, wait until these hearings and proper announcement by SEBi or RBI to make the next move.
