The restructuring was expected to unlock over ₹1 lakh crore in value, but is now facing regulatory objections and government pushback.
Billionaire Anil Agarwal’s plan to split Vedanta into six separate companies is running into serious roadblocks.
SEBI-registered analyst Mayank Singh Chandel noted that Agarwal launched the demerger in 2023, after a failed attempt to take Vedanta private in 2020.
The restructuring was expected to unlock over ₹1 lakh crore in value, reduce debt, and improve governance.
The entities to be created include Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power, Vedanta Iron and Steel, and Vedanta, which will continue to house the base metals business as well as Hindustan Zinc.
Copper Plant Setback And Regulatory Pushback
Chandel pointed out that Vedanta’s Sterlite copper smelter in Thoothukudi, Tamil Nadu, which once produced 40% of India’s copper, was initially meant to be part of the new Base Metals unit.
Its closure in 2018, following protests, and the Supreme Court’s rejection of a reopening plea in November 2024, forced Vedanta to exclude this business from its plan.
He added that although shareholders approved the revised scheme, SEBI raised objections because the changes were made after it had issued its no-objection certificate.
In August 2025, SEBI issued a warning letter, and the government soon raised separate objections to another part of the demerger.
According to Chandel, the demerger was intended to reduce debt, strengthen succession planning, and enhance governance; however, past setbacks and new regulatory challenges now threaten its progress.
Technical View
On the technical front, Chandel observed that Vedanta shares have been trading sideways since May 2024, with price swings narrowing through 2025.
Currently, the stock is hovering around its 200-day exponential moving average (EMA), indicating no strong trend.
SEBI-registered analyst Deepak Pal highlighted further weakness on the charts. He noted that Vedanta slipped sharply to 428 after failing to hold above the 445–450 resistance zone, forming a Lower High–Lower Low pattern.
A strong red candle signaled renewed selling pressure. The price is trading below short- and medium-term moving averages, Parabolic SAR dots are above price confirming the downtrend, moving average convergence divergence (MACD )remains in the negative zone, and relative strength index RSI is at 42, weak but not oversold.
Pal added that support lies at ₹425–₹420, with a break lower exposing 410, while resistance is at ₹445–₹450. Only a breakout above ₹450 could reverse the trend.
From a long-term perspective, sustained trading below ₹420 may drag the stock down to ₹400. In contrast, investors should wait for stability above ₹460 to initiate fresh accumulation.
He also pointed to upcoming events as potential triggers, including commodity price movements (zinc, aluminium, oil), Vedanta’s debt restructuring or fundraising plans, and second-quarter results due in October–November 2025.
What Is The Retail Mood?
On Stocktwits, retail sentiment for Vedanta was ‘bullish’ amid ‘normal’ message volume.
Vedanta’s stock has declined 4.2% so far in 2025.
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