This newly listed Vedanta demerged stock has rallied over 100% since its market debut; do you own it?

A recently listed Vedanta Group company, Vedanta Iron & Steel Ltd, has turned into a multibagger within just 13 trading sessions of its market debut. Listed on June 15 alongside three other demerged Vedanta Ltd entities, the stock has surged more than 100 per cent from its listing price, delivering stellar returns to investors.

BSE and NSE have placed Vedanta Iron's securities under the short-term Additional Surveillance Measure (ASM) framework. The exchanges move stocks to the short-term or long-term ASM framework to alert investors about heightened volatility in share prices.

On the day of its listing, Premji Invest-backed PI Opportunities AIF acquired Vedanta Iron shares worth around Rs 102 crore through open market transactions at an average price of Rs 21.02 per share.

Sharing his view on Vedanta Iron, Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, stated, "For any kind of serious investment decision, I prefer to wait for a couple of quarters and monitor how the results pan out." For those willing to enter, a 'buy-on-dips' strategy would be the way to go, he added.

Ravi Singh, Chief Research Officer at Master Capital Services, noted, "After such a sharp upmove, some short-term profit booking or consolidation cannot be ruled out. Investors with a medium- to long-term horizon can continue to hold the stock, as the business fundamentals remain encouraging. Fresh investors should avoid chasing the rally and instead look to accumulate on dips for a better risk-reward opportunity."

The rally follows the successful completion of Vedanta Ltd's demerger, which led to the listing of four independent entities -- Vedanta Iron Ltd, Vedanta Oil & Gas Ltd, Vedanta Power Ltd and Vedanta Aluminium Metal Ltd. With this, the Vedanta group now has five listed companies under the Vedanta brand, including Vedanta Ltd.

Commenting on the future roadmap, Vedanta Group Founder and Chairman Anil Agarwal said the demerger has created focused businesses with significant growth potential.

"Each of the five sectors is exciting and holds tremendous potential. We remain committed to being a dividend-paying entity and creating value for all the companies," said Agarwal.

Highlighting the opportunities in India, Agarwal said the group plans to invest $20 billion over the next five years. "Each of these companies has the potential to reach $100 billion in revenue," he added.