Vedanta demerger: Stock may fall sharply today; here's why

Vedanta share price: The Anil Agarwal-led Vedanta Ltd, a Nifty Next 50 constituent, is seen falling steeply to around Rs 300-325 per share on Thursday's opening bell, as the stock turns ex-date for the spin-off. This means Vedanta shares will start trading without the four demerged entities from today. The metals & mining stock will have a price discovery session from 9:15 am to 9:45 am, and normal trading will start from 10 am, reflecting the ex-demerger pricing.

Vedanta entity would house key businesses including Zinc India (Hindustan Zinc Ltd), Zinc International, Copper, and Ferro Chrome. The four independent entities namely Vedanta Aluminium Metal, Vedanta Iron and Steel, Vedanta Power (Talwandi Sabo Power) and Vedanta Oil and Gas (Malco Energy), will become additional constituents in the Nifty Next 50 and other broader indices.

Demerger listing timline

The demerged entities will not be traded live and therefore their market capitalisation and price will remain static till the time they are listed. Brokerages such as Nuvama and ICICIdirect believes Vedanta Aluminium would stand out as the most attractive demerged entity, with an expected listing valuation of Rs 400-plus per share. 

 As per the approved scheme, Vedanta shareholders, as on the record date, May 1, would be entitled to get one share each of the newly formed companies for every one share they held in Vedanta. On Friday, the demerger would be effective.

Nuvama expects the four listings should ideally be completed in June. Three trading days after listing, live market-cap will be considered for demerged stocks to calculate weight in all the indices.

"Amid firm commodity prices and volume growth, all listed entities are likely to record 19–42 per cent Ebitda CAGR over FY26–28E, except oil & gas. The company’s growth projects in aluminium, including bauxite and coal mines, though delayed are likely to be completed in FY27E. The company has changed its capital allocation policy wherein VEDL (the residual entity) may not pass on the entire dividend that it will receive from Hindustan Zinc," Nuvama said.

Vedanta on Wednesday said it delivered total shareholder return (TSR) of 48.6 per cent in FY26, outperforming the Nifty Metal Index by two times, while maintaining a strong dividend payout, including Rs 34 per share for the full fiscal. 

Vedanta logs highest-ever profit, sales in FY26

Ahead of the demerger, Vedanta recorded its highest-ever FY26 profit at Rs 25,096 crore, up 22 per cent. Its Q4 PAT jumped 89 per cent YoY to Rs 9,352 crore. The Anil Agarwal company also recorded its highest-ever FY26 revenue at Rs 1,74,075 crore, up 15 per cent YoY. Its Q4 revenue rose 29 per cent YoY to Rs 51,524 crore. The company said its net debt-to-Ebitda improved to 0.95 times, best in 14 quarters.

CFO Ajay Goel said, “The March quarter marks a defining point for Vedanta, with the delivery of our strongest-ever financial performance recording all-time highs in Revenue, Ebitda, and PAT for both the quarter and the full year and a clear positioning for the next phase of growth with Demerger effective from 1st of May 2026."