Vedanta demerger

Vedanta’s share price dropped by nearly 65% following its strategic demerger into five separate entities on April 30, 2026. Before the demerger, shares traded at approximately ₹773. After the split, the price fell to around ₹290.

The demerger ratio stands at 1:5. Eligible shareholders will receive one new share for each Vedanta share they hold. The new companies are Vedanta Aluminium Metal Ltd, Vedanta Power Ltd, Vedanta Oil & Gas Ltd, and Vedanta Iron and Steel Ltd.

Investors should note that Vedanta’s market capitalization was ₹1,08,141.78 crore after the price adjustment. The previous 52-week high was ₹794.90, while the new low is ₹271.50.

The company aims to unlock value through business segmentation. Analysts at ICICI Direct estimate that the revised sum of the parts (SoTP) valuation for all resulting entities combined is around ₹820 per share.

Among the demerged companies, analysts believe Vedanta Aluminium stands out as the most attractive entity. The new entities are expected to be listed within 4 to 8 weeks from the record date, likely around June to July 2026.

Investors will receive shares of the new companies once they are listed. They should monitor the combined value of Vedanta Ltd and its newly formed entities closely.