Key facts
- Four Vedanta demerged entities—Aluminium, Power, Oil & Gas, and Iron & Steel—will list on BSE and NSE on Monday, June 15.
- Vedanta Aluminium is expected to debut with a market capitalization exceeding Rs 1.74 lakh crore.
- Analysts have provided fair value estimates for each of the four newly listed stocks.
- Vedanta's shares have already adjusted to the demerger, trading at Rs 309.65 on Friday.
- The demerged companies will initially be in the Trade-to-Trade (T2T) segment.
Four companies spun off from Vedanta are scheduled to commence trading on the BSE and NSE on Monday, June 15, following a significant demerger. The entities are Vedanta Aluminium Metal, Vedanta Power, Vedanta Oil & Gas, and Vedanta Iron & Steel. Analysts anticipate Vedanta Aluminium Metal will debut as the largest among the new listings, with a projected market capitalization exceeding Rs 1.74 lakh crore, potentially surpassing its parent company.
According to Nuvama's report, Vedanta Aluminium Metal is expected to list with a market cap of over Rs 1.74 lakh crore. Sunny Agrawal of SBI Securities has assigned a fair value of Rs 489 per share to Vedanta Aluminium Metal, citing its strong revenue contribution, favorable industry dynamics, and capacity expansions. ICICI Direct has estimated a share price of Rs 398, calling it the 'crown jewel' of the conglomerate, supported by tight global supply and elevated aluminium prices.
Vedanta Power is projected to debut with a market capitalization of approximately Rs 17,466 crore. Fair value estimates for Vedanta Power shares range from Rs 35 (CLSA) to Rs 60 (Kotak Institutional Equities), with SBI Securities estimating Rs 44 and Emkay suggesting Rs 51.7.
Vedanta Oil & Gas is expected to list with a market cap of Rs 15,824 crore, and Sunny Agrawal has set its fair value at Rs 42 per share. The company aims to scale up its upstream operations significantly.
Vedanta Iron & Steel is anticipated to list with a market cap of Rs 8,680 crore. Experts suggest this business may receive less investor attention compared to more focused players, with a fair value estimate of Rs 19 per share from SBI Securities.
Vedanta's own shares adjusted for the demerger on April 30, initially dropping significantly before recovering. The stock closed at Rs 309.65 on Friday, with a market capitalization of just over Rs 1.21 lakh crore. The demerged companies will initially be placed in the Trade-to-Trade (T2T) segment, meaning all transactions will require compulsory delivery.