Vedanta demerger
Vedanta’s recent demerger has resulted in a staggering 65% drop in its share price, transitioning from ₹773 to around ₹290 on the ex-date. This strategic move aims to restructure its business model into five separate entities.
The demerger ratio stands at 1:5, meaning eligible shareholders will receive one new share for every stock they hold in Vedanta Ltd. Analysts at ICICI Direct estimate that the combined value of all resulting entities is around ₹820 per share.
Historically, Vedanta operated as a single entity managing various sectors including aluminium, oil and gas, power, and steel. The decision to segment these businesses is designed to unlock value and improve operational efficiency.
After the demerger, Vedanta’s market capitalization fell to ₹1,08,141.78 crore. The company’s 52-week high was ₹794.90; now it faces a new low of ₹271.50.
Investors are keenly watching how the market responds to this restructuring. “Vedanta didn’t actually crash 60%. What you saw was a price adjustment after the demerger,” one analyst noted.
The new companies—Vedanta Aluminium Metal Ltd, Vedanta Power Ltd, Vedanta Oil & Gas Ltd, and Vedanta Iron and Steel Ltd—are expected to be listed within 4 to 8 weeks from the record date, likely around June or July 2026.
Among these entities, analysts believe that Vedanta Aluminium could stand out as the most attractive investment opportunity moving forward.
As the dust settles from this major shift, investors should closely monitor the individual performance of each separated business once they hit the stock market.
