The most important factor continues to remain the demerger, as it nears the record date of May 1, which happens to be a market holiday.
This means, that the stock will begin trading ex-demerger from Thursday, April 30. Therefore, today will be the last day for those looking to buy the stock for availing the demerger benefits, owing to the T+1 settlement cycle. The stock should be in your demat account by today’s close for an investor to be entitled to the demerger plan.
Those who will be buying shares of Vedanta on Thursday, will not be eligible to avail the demerger benefits.
Eligible shareholders will receive one share each of Vedanta Aluminium Metal Ltd., Talwandi Sabo Power Ltd. (which will be renamed Vedanta Power Ltd.), Malco Energy Ltd. (which will be renamed Vedanta Oil & Gas Ltd.), and Vedanta Iron and Steel Ltd., for every one share they hold of the consolidated entity as on the record date.
Over the next six to eight months, there will be five listed entitles of the Vedanta Group on the bourses, subject to prior approvals.
The second important trigger for Vedanta today is that the company will be reporting its quarterly results for the January-March period. It is likely to be a strong quarter for the company led by higher commodity prices in Silver, Aluminium and Zinc.
While the company’s Aluminium segment appears best placed, some benefits of higher prices could be offset by hedged quantities. The company’s oil and gas division is likely to report a stable Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) on a sequential basis.
Nearly 45% of Vedanta’s EBIT comes from Hindustan Zinc, which has already reported results and therefore factored into the price.
Shares of Vedanta ended little changed on Tuesday at ₹742.5. The stock is up 24% so far this year.
