Vedanta Demerger Listing: The demerger of mining major Vedanta took effect in today’s trading session. However, the share price performance of the newly listed Vedanta-owned entities has shown little enthusiasm among investors.
Vedanta Demerger Listing Out of the five entities created through the demerger, four were trading in the red, while one emerged as an outlier, gaining nearly 5 per cent. Here’s how the stocks reacted:
Vedanta Aluminium & Metal Ltd debuted with a market capitalisation of Rs 1.95 lakh crore. On its listing day, the stock hit the 5 per cent lower circuit, falling Rs 26.35 to trade at Rs 500.65.
Vedanta Oil & Gas Share Price
Vedanta Oil & Gas Ltd was listed with a market capitalisation of Rs 14,487.99 crore. Similar to Vedanta Aluminium & Metal, the stock also hit its 5 per cent lower circuit and was trading at Rs 37.05.
Vedanta Power emerged as the strongest performer among the newly listed entities. The stock was trading 4.1 per cent higher at Rs 43, bucking the broader weakness seen across the group’s other demerged companies.
Vedanta Iron & Steel Share Price
Vedanta Iron & Steel Ltd was listed with a market capitalisation of Rs 8,231.37 crore. The stock also came under selling pressure, slipping more than 5 per cent to hit its lower circuit and trading around Rs 21.
As of 10:15 am, Vedanta Ltd, with a market capitalisation of Rs 1.20 lakh crore, was trading 0.7 per cent lower at Rs 307.40 per share.
At first glance, the sharp declines in most of Vedanta’s newly listed demerged entities may give the impression that shareholders who owned Vedanta Ltd before the demerger are sitting on losses. However, that is not the case.
| Vedanta Ltd share price Before Demerger | Rs 770 |
| Now | |
| Vedanta Ltd | 307.4 |
| Vedanta Aluminium | 500.65 |
| Vedanta Power | 43 |
| Vedanta Oil & Gas | 37.05 |
| Vedanta Steel & Iron Ore | 21 |
| Total Share price now | 909.1 |
| Upside for Shareholders | 18.06% |
Before the demerger, Vedanta Ltd shares were trading at around Rs 770. Following the restructuring, shareholders now hold shares in Vedanta Ltd and the four newly listed entities.
Based on current market prices, Vedanta Ltd is trading at Rs 307.40, Vedanta Aluminium & Metal at Rs 500.65, Vedanta Power at Rs 43, Vedanta Oil & Gas at Rs 37.05, and Vedanta Iron & Steel at Rs 21.
Together, these holdings are valued at Rs 909.10, compared with the pre-demerger price of Rs 770, translating into a notional gain of about 18.06 per cent for shareholders.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
