New Delhi: Vedanta shares fell more than 1 percent on Wednesday after the National Company Law Tribunal (NCLT) postponed the hearing on the company’s ambitious disinvestment proposal until October 8. The Ministry of Petroleum and Natural Gas had objected to the plan, citing lack of necessary disclosures.
The company’s shares fell 3.78 percent to ₹443.90 during the day’s trading on the BSE. Later, it recovered some of its losses and closed at ₹456.05 per share, down 1.15 percent.
On the NSE, the company’s shares fell 1.11 percent to close at ₹456.15 per share. During the day’s trading, the company’s shares fell 3.75 percent.
The NCLT’s Mumbai bench also directed Vedanta and the ministry to submit written arguments within five days.
The Ministry of Petroleum and Natural Gas’s lawyer told the tribunal that they are examining the details of the RJ block and have sought clarification on the disclosures.
The lawyer further stated that the ministry also wants disclosure regarding concealment of facts, including showing exploration blocks as Vedanta’s assets and details of loans taken based on those assets.
The lawyer said, “As a regulator and lender, it is my duty to present all these facts before the tribunal to determine whether the scheme is clear or unclear. We want disclosure regarding the RJ-ON-90/1 oil and gas block operated in Rajasthan. We want clear disclosure.”
Responding to the ministry’s claims, Vedanta’s counsel said the National Company Law Appellate Tribunal (NCLAT) on Tuesday approved Vedanta’s plan to restructure its power and metals businesses, including Talwandi Sabo Power, as key procedural hurdles have been cleared following an agreement with EPC contractor Sepco.
Furthermore, Vedanta’s counsel said the company has already completed all necessary compliances.
Vedanta had filed a scheme of arrangement before the Mumbai bench of the NCLT, involving four group companies – Vedanta Aluminium Metal, Talwandi Sabo Power, Malco Energy, and Vedanta Iron & Steel – along with its shareholders and creditors.
The Ministry of Petroleum and Natural Gas had objected to Vedanta’s proposed split.
