Vedanta Limited has announced another major corporate restructuring by approving the demerger of its Real Estate Business into a newly created company, Vedanta Property Platforms Limited (VPPL). The move follows the successful five-way demerger completed earlier in 2026 and aims to unlock the value of Vedanta’s large portfolio of surplus real estate assets spread across India.

The proposed demerger is subject to regulatory approvals, including approvals from the stock exchanges, SEBI, and the National Company Law Tribunal (NCLT).

Vedanta Real Estate Demerger at a Glance

The Board approved the draft Scheme of Arrangement on July 30, 2026, under which Vedanta’s Real Estate Business will be transferred to VPPL on a going-concern basis.

Why is Vedanta Demerging Its Real Estate Business?

According to the company, Vedanta has accumulated a substantial portfolio of land, buildings, and other real estate assets over the years through acquisitions. Since these assets are embedded within its mining and metals operations, they have received limited focus and have not been fully utilized.

The company believes a separate listed real estate platform will:

• Unlock hidden value from non-core assets
• Improve transparency
• Enable dedicated management
• Attract sector-specific investors
• Create a focused real estate growth platform
• Improve capital allocation and governance

Vedanta also intends to consolidate real estate assets held by other group companies over time to create a larger and more diversified platform.

Share Exchange Ratio

Existing shareholders will receive:

1 fully paid-up equity share of Vedanta Property Platforms Limited (VPPL) for every 20 fully paid-up shares of Vedanta Limited held on the Record Date.

There will be no cash payment under the scheme.

Fractional entitlements will be aggregated, sold through a trustee, and the proceeds distributed proportionately to eligible shareholders.

What Assets Will VPPL Own?

The new company will house Vedanta’s surplus real estate assets, including approximately:

• 2,200+ acres of industrial land
• Around 55,000 sq. ft. of residential and commercial properties
• Properties spread across multiple Indian states including Maharashtra, Goa, Tamil Nadu, Karnataka, and Gujarat.

Future Vision for VPPL

Vedanta plans to transform VPPL into a dedicated real estate platform capable of developing:

• Industrial parks
• Logistics parks
• Warehousing facilities
• Commercial office spaces
• Residential projects
• IT parks
• Data centres
• Manufacturing parks
• Future infrastructure projects

The company also intends to explore acquisitions of additional real estate assets from other Vedanta Group companies to further expand the platform.

Why Management Believes This Will Create Value

Vedanta points to its recently completed business demerger, where shareholders received separate listed companies for aluminium, power, oil & gas, and iron & steel businesses.

According to the investor presentation, separating businesses into focused entities:

• Improves valuation transparency
• Allows sector-specific capital allocation
• Creates independent management teams
• Gives investors flexibility to hold or monetize specific businesses

The company believes the real estate demerger could similarly unlock additional shareholder value.

Will Vedanta’s Shareholding Change?

The company clarified that:

• There will be no change in Vedanta Limited’s existing shareholding pattern.
• VPPL will become a separately listed company with shares allotted proportionately to Vedanta shareholders.

Will VPPL Be Listed?

Yes.

Vedanta has confirmed that it intends to list the shares of Vedanta Property Platforms Limited (VPPL) on both:

• BSE
• NSE

after obtaining all required approvals.

Expected Timeline

The company expects the transaction to proceed through the following stages:

• Submission to stock exchanges
• SEBI observations
• NCLT approval
• Shareholder and creditor meetings
• Final NCLT sanction
• Listing of VPPL

The presentation indicates completion is expected during FY28, subject to regulatory approvals.

Chairman Anil Agarwal’s View

Vedanta Chairman Anil Agarwal said the company plans to create another “pure-play” business following the success of its earlier demerger.

According to him, separating the surplus real estate assets into an independent company is intended to unlock significant value for shareholders.

What Does This Mean for Vedanta Shareholders?

If approved, shareholders will receive additional listed shares in VPPL without making any fresh investment.

Potential benefits include:

• Ownership in a dedicated real estate company
• Better visibility into the value of Vedanta’s real estate portfolio
• Potential for independent valuation of the real estate business
• Opportunity to benefit from future growth in India’s real estate sector

However, the demerger remains subject to approvals from regulators, stock exchanges, shareholders, creditors, and the NCLT before becoming effective.