(Reuters) -Indian miner Vedanta’s demerger is facing objection from the federal government, CNBC-TV18 reported on Wednesday, after the company received a warning from the markets regulator for non-compliance.
Shares of the company fell 2.4% to hit session’s low after the report.
Vedanta, led by billionaire Anil Agarwal, aims for a sweeping overhaul to carve itself up into multiple separate businesses, in a move aimed at shoring up the group’s financial performance.
India’s National Company Law Tribunal has deferred Vedanta’s demerger case hearing to September 17 after the federal government objected to the split, claiming it has “serious objections,” the CNBC-TV18 report said.
The federal government has flagged concealment and non-disclosure of key details for the demerger as well as “inflated revenues” and “concealed liabilities,” it added.
Vedanta did not immediately respond to a Reuters request for comment.
(Reporting by Manvi Pant; Editing by Mrigank Dhaniwala)
