Vedanta’s four demerged entities begin trading on BSE and NSE

Vedanta Demerger: Four New Entities To List On BSE, NSE Monday

Vedanta Group’s four newly demerged businesses are expected to begin trading on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on Monday, according to sources. In addition to the already listed Vedanta Ltd, shares of Vedanta Aluminium Metal (VAML), Vedanta Oil & Gas (VOGL), Vedanta Power, and Vedanta Iron & Steel (VISL) will now be available for investors on Indian stock exchanges.The demerger is seen as a major step toward unlocking value for shareholders, as each entity will operate independently, raise capital based on its specific business plans, and offer investors the ability to invest directly in their preferred sector. Anil Agarwal’s ₹43,500 Crore Refinancing Masterstroke, Vedanta Targets 5.2 Billion Dollar Debt Overhaul As Financial Strength Improves The scheme was approved by the National Company Law Tribunal (NCLT) in December last year. Under the 1:1 arrangement, shareholders of Vedanta Ltd will receive one share in each of the demerged companies for every share held in the parent company.Following the fourth-quarter financial results, Vedanta Resources CEO Deshnee Naidoo had indicated in an investor call that the demerged entities would commence trading by mid-June.The group highlighted that the demerger simplifies Vedanta’s corporate structure by creating sector-focused, independent businesses. Vedanta Discloses ED Search Operation, Enforcement Directorate Probe Under FEMA Ends Without Penalty Or Business Impact It also opens avenues for global investors—including sovereign wealth funds, retail investors, and strategic investors—to directly participate in Vedanta’s world-class assets, aligning with India’s growth trajectory.Moreover, individual units will gain greater flexibility to pursue strategic agendas, align operations with customers, investment cycles, and end markets, and operate in a manner tailored to their specific business dynamics. Analysts expect that this structural separation will enhance operational efficiency and enable each unit to execute its strategic priorities more effectively, while giving shareholders clearer visibility into performance and value creation for each segment.

17 hours ago

Vedanta demerger: Which demerged stock should you buy after their market debut on June 15?

The four companies that spun out from Vedanta’s mega demerger are set to list on stock exchanges on Monday (June 15). For investors who have missed out on the mega restructuring, analysts commented on which stock may provide better returns once they debut on stock markets.The Anil Agarwal-led conglomerate in April had announced that each of its eligible shareholders will get one share of Vedanta Aluminium Metal (VAML), one share of Talwandi Sabo Power (now renamed to Vedanta Power), one share of Malco Energy (now renamed to Vedanta Oil and Gas) and one share of Vedanta Iron and Steel, for every share held in Vedanta, marking one of the biggest corporate restructuring in India’s metals and mining space.Vedanta had set May 1 as the record date for the much-awaited demerger. While the eligible shareholders can continue trading Vedanta stock, the value attributable to these new entities is currently in price-discovery limbo—from the record date until their listings—since investors cannot trade them yet, even as Vedanta’s share price has already adjusted lower post-demerger.According to exchange notices, Vedanta Oil & Gas, Vedanta Power, Vedanta Aluminium Metal and Vedanta Iron & Steel make their much-awaited market debut on Monday and will be initially placed in the Trade-to-Trade (T2T) segment, where every transaction results in compulsory delivery.While eligible investors will be awarded with the shares of the four new companies automatically once they list, analysts suggested what investors, who missed the record date and are planning to buy some of the new stocks once they list, should do.Also read: At what price will each of the four new Vedanta companies list? Check cost of acquisitionWhich stock should you buy?Sunny Agrawal, Head of Fundamental Research at SBI Securities, said an investor can look to buy the shares of Vedanta Aluminium Metal on the back of robust capacity expansion of aluminium and strong LME Aluminium prices.He said that the fair value of Vedanta Aluminium Metal stands at Rs 489 apiece, while that of Vedanta Power stands at Rs 44 per share. Vedanta Oil & Gas commands a fair value of Rs 42 per share, while the same of Vedanta Iron & Steel stands at Rs 19 per share, according to the analyst.“Notably, among the demerged businesses, Vedanta Aluminium stands out as the most attractive entity, with an expected listing valuation of Rs 400+ per share. This is supported by its strong contribution to group revenues and margins, along with favourable industry dynamics such as tight global supply, elevated aluminium prices, and ongoing capacity expansions driving volume growth,” said ICICI Direct in a report.Also read: How will Vedanta demerger impact dividend payouts for shareholders?Nuvama in its report had said that Vedanta and Vedanta Aluminium will likely remain large-cap, while those of Vedanta Power, Vedanta Oil & Gas and Vedanta Steel & Iron ore will list at small-cap stocks. It had highlighted that mutual fund flows will likely be skewed towards the two large caps, while the small cap demerger entities will see limited participation.ICRA recently removed the long-term rating of Vedanta Aluminium Limited (VAML) from watch with developing implications, following greater clarity on the allocation of assets and liabilities under the ongoing demerger scheme of Vedanta Limited as well as the support framework across group entities. ICRA has also upgraded the rating and assigned a Stable outlook to the long-term rating. “The rating action factors in ICRA’s expectation that VAML’s financial profile will strengthen further in FY2027, following the strong improvement seen in FY2026 owing to a sharp increase in aluminium prices globally. On the London Metal Exchange (LME), aluminum prices remained firm during FY2026 with an average of $2,771/tonne, around 10% higher compared to the previous fiscal. The prices have continued to be elevated in the current fiscal so far and are expected to remain firm in the near term, given the global supply-side constraints and the ongoing geopolitical situation. The elevated prices are expected to support VAML’s credit profile,” the ratings agency further said, while highlighting steady cost structure, solid sales expectations and strong business profile.Vedanta Aluminium currently has an installed capacity of around 2.4 million tonnes per annum and is targeting 3 million tonnes per annum by FY28, with an additional 3 MTPA greenfield expansion under evaluation. The company operates the world's largest single-location aluminium smelter and exports products to nearly 70 countries.For Vedanta Power, Emkay estimates a share price of around Rs 51.7 per share. Kotak Institutional Equities see the stock at Rs 60 per share, while Nuvama's valuation implies a value of around Rs 47 per share. CLSA's estimate corresponds to roughly Rs 35 per share.Also read: Analysts expect 7-8% returns for retail investors from Wipro's Rs 15,000 crore buyback. Here's how(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

1 day ago

Vedanta demerger: Four spin-off companies list on exchanges on June 15

Investors in Vedanta will finally get a price for the group's demerged businesses on June 15, when four newly created entities — Vedanta Aluminium Metal (VAML), Vedanta Oil & Gas (VOGL), Vedanta Power and Vedanta Iron & Steel (VISL) — begin trading on Indian stock exchanges.The listings mark the end of Vedanta's long-awaited demerger exercise, one of the biggest corporate restructurings undertaken in India's metals, mining and natural resources sector.According to exchange notices, Vedanta Oil & Gas, Vedanta Power, Vedanta Aluminium Metal and Vedanta Iron & Steel will be listed on Monday and initially placed in the Trade-to-Trade (T2T) segment, where every transaction results in compulsory delivery.The demerger became effective earlier this year, with Vedanta fixing May 1 as the record date. Under the scheme, shareholders received one share each of Vedanta Aluminium Metal, Vedanta Power, Vedanta Oil & Gas and Vedanta Iron & Steel for every one share held in Vedanta.While Vedanta shares have continued trading after the record date, investors have been unable to transact in the demerged entities until now. As a result, a part of shareholder value has remained locked in the absence of market-driven price discovery.The listing is expected to provide the first indication of how investors value each business individually and whether the demerger succeeds in unlocking value, a key objective highlighted by chairman Anil Agarwal.The restructuring leaves the parent Vedanta with businesses such as Hindustan Zinc, copper operations and critical minerals, while creating four standalone companies focused on aluminium, oil and gas, power, and iron and steel.Agarwal has repeatedly argued that each vertical has the scale and growth potential to thrive independently.Vedanta Aluminium, India's largest aluminium producer, plans to double its capacity to 6 million tonnes and aims to strengthen its position as one of the world's lowest-cost producers.Vedanta Oil & Gas, built around the group's Cairn assets, is targeting production of 300,000-500,000 barrels per day backed by a planned investment of $5 billion. The company is currently India's largest private-sector upstream oil and gas producer.Vedanta Power enters the market with 4.2 GW of operational generation capacity and a 12 GW expansion pipeline. The company has also outlined plans to diversify into hydropower and nuclear energy alongside conventional thermal generation.Vedanta Iron & Steel, meanwhile, is expected to focus on expanding green steel and specialty steel production, leveraging the group's raw material linkages and infrastructure assets.The demerger comes as Vedanta pursues an aggressive growth strategy across businesses while simultaneously reducing leverage. The group has announced growth capital expenditure plans of around Rs 15,000 crore and says the new structure will allow each company to pursue sector-specific opportunities with greater flexibility.

1 day ago