Four demerged entities of Vedanta Group began trading on Indian stock exchanges on Monday, completing a restructuring process that was first announced in September 2023.
The new listings are:
- Vedanta Aluminium Metal
- Vedanta Power
- Vedanta Oil & Gas
- Vedanta Iron & Steel
Mixed debut for new entities
Among the four, Vedanta Aluminium Metal posted the strongest listing.
The stock opened at:
- ₹527 on the BSE
- ₹522 on the NSE
It later touched an intraday high of ₹538 before hitting the 5% lower circuit at ₹500.65 by 10:14 am.
About 1.325 crore shares changed hands across the NSE and BSE.
Vedanta Power opened at ₹41.30 and traded around 4% higher at ₹42.80. During the session, the stock touched a high of ₹43.35 and a low of ₹39.25.
Vedanta Oil & Gas debuted at ₹39 and later hit the 5% lower circuit at ₹37.05 after touching an intraday high of ₹40.95.
Vedanta Iron & Steel opened at ₹22.25 and was quoted at ₹21.05 on the BSE. The stock touched an intraday low of ₹19.60.
Trade-to-Trade segment
All four stocks have been placed in the ‘T’ group, or the Trade-to-Trade segment, for the first 10 trading days from listing.
According to a BSE notification dated June 12:
- Intraday trading is not allowed.
- All trades will result in compulsory delivery.
Combined market value
The combined market capitalization of the five entities, including the residual Vedanta Ltd, stood at around ₹3.55 lakh crore after listing.
Before the demerger, Vedanta’s market capitalization was about ₹3.02 lakh crore.
Businesses housed in each company
Vedanta Aluminium Metal
This entity includes:
- Jharsuguda aluminium smelter
- BALCO operations
- Lanjigarh alumina refinery
- Captive coal mines
- Bauxite mines
It also holds a 51% stake in BALCO.
Vedanta Power
The company operates thermal power assets, including:
- Talwandi Sabo
- Jharsuguda IPP
- Meenakshi
- Atena
Vedanta Oil & Gas
This company houses Cairn Oil & Gas, India’s largest private crude oil producer.
According to the company, Cairn contributes about 25% of India’s oil and gas production.
Vedanta Iron & Steel
Its portfolio includes:
- Iron ore operations in Karnataka
- Goa assets
- Odisha assets
- ESL Steel business
- International operations in Liberia
Residual Vedanta Ltd
The remaining listed entity retains:
- Hindustan Zinc
- Zinc International
- Copper business
- Ferro chrome business
Timeline of the demerger
Key milestones were:
- September 2023: Demerger announced
- December 2024: NCLT approval received
- May 1, 2026: Record date fixed
Under the 1:1 demerger scheme, shareholders received one share of each demerged company for every share held in Vedanta.
TL;DR
Vedanta’s four demerged entities started trading on Monday, completing a restructuring announced in 2023. Shareholders received one share of each new company for every Vedanta share held under the 1:1 scheme.
AI Summary
- Four Vedanta entities made their market debut.
- Vedanta Aluminium Metal recorded the strongest opening.
- All four stocks are in the Trade-to-Trade segment for 10 days.
- Combined market capitalization stood at ₹3.55 lakh crore.
- Shareholders received shares under a 1:1 demerger scheme.