Vedanta demerger: Oil & Gas, Power, Aluminium, Iron & Steel firms to list today; what brokerages say

Four demerged companies of Vedanta Ltd are set to list on the BSE and NSE on Monday, June 15, marking the first market-based valuation of the individual businesses after the separation. The companies are Vedanta Oil & Gas, Vedanta Power, Vedanta Aluminium Metal and Vedanta Iron & Steel. The existing Vedanta Ltd remains listed, holding base metals and zinc business.

Exchange notices said all four stocks will initially trade in the trade-to-trade segment, where every transaction results in compulsory delivery and the circuit filter is capped at 5 per cent.  Under the approved scheme, shareholders who held Vedanta shares on the record date of May 1, 2026, received one share in each of the four companies for every Vedanta share held.   

Brokerages have assessed the businesses on a sum-of-the-parts basis. Nuvama Institutional Equities said Vedanta’s resources portfolio offers scale, diversification and a strong balance sheet, supported by its low-cost zinc-lead-silver business. Business Today has collaborated the prices for all four demerged entities from six brokerage firms and given the average price for the same.

It said captive mines keep zinc production costs globally competitive, while future growth is likely to come from higher aluminium and zinc volumes and cost efficiencies in aluminium. It also flagged risks including rising debt at Vedanta to repay parent debt, export duties on aluminium or zinc, lower commodity prices, delays in key expansion projects and weaker volume growth.

Emkay Global Financial Services said it sees a strong re-rating case for Vedanta Aluminium and Vedanta Power. It said current valuations for Hindustan Zinc already reflect prevailing spot price assumptions, limiting near-term upside for the residual Vedanta entity. Emkay added that the demerger has been structured with balance-sheet discipline, with debt aligned to cash flows, while the Oil & Gas and Iron & Steel businesses will be largely net-debt free.

Kotak Institutional Equities said consolidated debt of $5.5 billion would be split into $3.5 billion, $1.0 billion, $0.8 billion and $0.2 billion across aluminium, Vedanta, power, and iron & steel respectively, while oil & gas would remain debt free. It said management sees scope to bring in external investors in each segment after deleveraging and that five independent boards will decide dividend policies.

Systematix Institutional Equities, echoed the similar views, described the demerger as a key value-unlocking catalyst. Motilal Oswal Financial Services said the dividend policy will move from a rule-based system to a principle-based approach, allowing greater flexibility but reducing payout predictability. 

Investec said FY26 EBITDA for the five entities stands at $2.9 billion, $2.6 billion, $0.2 billion, $0.14 billion and $0.5 billion respectively, and pointed to milestones at Sijimali and Ghogharpalli that could add about $100 per tonne to EBITDA.

CLSA said lower costs and capacity expansion in key businesses should support earnings, with timely commissioning of ongoing projects seen as a key trigger. Investors will closely watch valuation discovery, debt allocation, project execution and dividend policies as the new entities begin trading independently.