Vedanta shares end over 1 pc lower after falling nearly 4 pc in intra-day

New Delhi, Sep 17 (PTI) Shares of Vedanta ended over 1 per cent lower on Wednesday after the National Company Law Tribunal (NCLT) deferred the hearing on the firm's ambitious demerger proposal to October 8, as the Ministry of Petroleum and Natural Gas objected to the scheme, citing a lack of necessary disclosures.

The stock dropped 3.78 per cent to Rs 443.90 during the day on the BSE. Later, it recovered some of the lost ground and ended at Rs 456.05 apiece, down 1.15 per cent.

On the NSE, shares of the firm dipped 1.11 per cent to end at Rs 456.15 each. During the day, the stock fell by 3.75 per cent.

The Mumbai bench of NCLT also directed Vedanta and the ministry to file written submissions in five days.

The counsel representing the Ministry of Petroleum and Natural Gas told the tribunal that they are asking about the details of the RJ block, and sought clarifications on disclosures.

The counsel further said the ministry also wants disclosures on the concealment of facts, which includes showing the exploration blocks as Vedanta's assets and details of the loan taken on the basis of those assets.

"As a regulator and a creditor, it is my duty to bring all these facts before the tribunal to show that whether the scheme is clear or opaque. We are asking for disclosures on the RJ-ON-90/1 Oil and Gas Block, an operating oil and gas block in Rajasthan. We are asking for clear disclosures," the counsel stated.

Responding to the ministry's assertions, Vedanta's counsel said the National Company Law Appellate Tribunal (NCLAT) had cleared Vedanta's plan to restructure its power and metal businesses on Tuesday, which includes Talwandi Sabo Power, after a settlement with EPC contractor Sepco cleared key procedural hurdles.

Further, Vedanta's counsel stated that the company has already complied with all the compliances required.

Vedanta had filed a scheme of arrangement before the NCLT Mumbai bench covering four group companies - Vedanta Aluminium Metal, Talwandi Sabo Power, Malco Energy, and Vedanta Iron and Steel - along with their shareholders and creditors.

The Ministry of Petroleum and Natural Gas had objected to Vedanta's proposed demerger. PTI SUM SUM SHW