The board has approved May 1, 2026 as the record date for its demerger. Shareholders will be entitled to receive one share of every demerged entity for every one share they own of the currently listed business.
Here are the four entities that will be listed after the demerger process is complete:
- Vedanta Aluminium Metal Ltd.
- Talwandi Sabo Power Ltd., which will be renamed as Vedanta Power Ltd.
- Malco Energy Ltd., which will be renamed as Vedanta Oil & Gas Ltd.
- and Vedanta Iron and Steel Ltd.
Vedanta has cited the need to have a simplified corporate structure, with focused verticals and rebranding of businesses as the key rationale behind the demerger.
Listing Timelines
There will now be five listed companies of the Vedanta Group on Dalal Street. The listing of the new entities will take place between four to eight weeks of the demerger record date, subject to approvals.
This means that all the new entities should be listed on the bourses within the next two months.
Vedanta Business Value
Brokerage firm Nuvama has a price target of ₹899 on Vedanta, which implies an upside potential of 17% from current levels.
The brokerage has valued the Aluminium business of the company at ₹449, while the currently listed entity is valued at ₹296.
Similarly, Kotak Institutional Equities has a target of ₹915 on Vedanta, with the Aluminium business being valued at ₹493 and the currently listed entity at ₹282 apiece.
Shares of Vedanta ended 2.2% lower on Monday amidst the market volatility at ₹770. The stock has risen 20% in the last one month, taking its year-to-date advance to 28% so far.
