Key facts
- Four Vedanta Group companies have listed on the BSE and NSE following a major demerger.
- Vedanta Power shares debuted on the NSE at Rs 41.80 and on the BSE at Rs 41.30.
- Vedanta Iron & Steel listed on the BSE at Rs 22 and NSE at Rs 20, with an initial market capitalization of Rs 7,821 crore.
- Vedanta Oil & Gas shares commenced trading at Rs 39.
- Vedanta Aluminium Metal debuted at Rs 527.
- The demerger aims to eliminate Vedanta's conglomerate discount.
Vedanta Limited's extensive corporate restructuring culminated in the simultaneous listing of four newly created entities on the BSE and NSE. This mega demerger aims to unlock shareholder value by eliminating the conglomerate discount that has historically impacted the diversified commodities giant. The move has resulted in a significant market re-rating, adding approximately Rs 63,500 crore to the combined market capitalization of the five separate Vedanta entities and delivering a roughly 22.5% return to shareholders in under two months.
The demerger strategy is designed to allow investors to directly invest in specific commodity cycles, moving away from the complexity of a diversified conglomerate. Analysts believe this structural pivot will enable each business to attract sector-specific investors and achieve peer-based valuations.
Vedanta Aluminium Metal emerged as the largest entity by value, debuting at Rs 527. Other listed entities include Vedanta Power, which began trading at Rs 41.30 on the NSE and Rs 41.80 on the BSE; Vedanta Iron & Steel, listing at Rs 22 on the BSE and Rs 20 on the NSE with a market cap of Rs 7,821 crore; and Vedanta Oil & Gas, which started trading at Rs 39. The residual Vedanta Limited entity retains significant assets, including its holding in Hindustan Zinc.
Analysts from Khandwala Securities and ICICI Securities expressed bullish views, highlighting Vedanta's record financials, strong growth capex, and improved leverage. They noted that the demerger removes the typical 20-40% conglomerate discount, with specific businesses like Vedanta Aluminium being recognized for their low-cost integrated production and scale. ICICI Securities' Vikash Singh valued the residual Vedanta Ltd at Rs 369/share and the aluminium business at Rs 398/share, projecting a 23% EBITDA CAGR through FY26-28E.
Credit rating agency ICRA upgraded Vedanta Limited and Vedanta Aluminium Metal Limited to AA+ with a Stable outlook, citing improved clarity on asset and liability allocation and strong financial performance. Vedanta Ltd's final results as a combined entity for Q4FY26 showed record revenue, EBITDA, and profit after tax, with a net debt to EBITDA ratio improving to 0.95x.