Key facts
- Vedanta Aluminium listed on the BSE at Rs 527.
- Vedanta Aluminium listed on the NSE at Rs 522.
- Vedanta Aluminium's market capitalization reached Rs 2.06 lakh crore upon listing.
- Vedanta's demerger created four new listed entities.
- Vedanta Aluminium Metal emerged as the most valuable demerged entity.
- The combined market capitalization of Vedanta and its demerged entities reached Rs 3.5 lakh crore.
- The combined market cap represents a 67% increase compared to the undivided company's one-year average market cap.
- Analysts favor Vedanta Aluminium over Vedanta Power.
- Vedanta Aluminium is favored due to its scale, integrated operations, and growth prospects.
Vedanta Aluminium made its debut on the stock exchanges, listing on the BSE at Rs 527 and on the NSE at Rs 522. The company's market capitalization upon listing reached Rs 2.06 lakh crore, making it the most valuable entity among the four new companies created through Vedanta's demerger.
The demerger has resulted in a significant increase in shareholder value, with the combined market capitalization of the parent company and its four newly listed entities climbing to Rs 3.5 lakh crore on their listing debut. This represents a substantial 67% increase when compared to the undivided company's one-year average market capitalization.
Analysts are expressing a preference for the Vedanta Aluminium Metal business over the Vedanta Power unit. This favoritism stems from the aluminium business's larger scale, its integrated operations, and its strong growth prospects. While Vedanta Power benefits from revenue visibility through power purchase agreements, the aluminium segment is seen as more attractive.
The demerger has effectively unlocked value for shareholders by separating the diverse business segments into distinct listed entities, allowing investors to invest in specific areas of the conglomerate.