Vedanta demerged entities listing: Opening price of Aluminium Metal, Oil & Gas, Power, Iron & Steel cos

Shares of all four demerged entities of Vedanta Ltd kicked-off their trading on Monday, June 15 as individual stocks. With the listing of Vedanta Oil & Gas, Vedanta Power, Vedanta Aluminium Metal and Vedanta Iron & Steel, Anil Agrawal-led conglomerate has successfully split its metal and mining business into five separate business, with existing Vedanta Ltd being already listed.

Biggest among the four, Vedanta Aluminium was listed at Rs 527, commanding a total market capitalization of Rs 2.06 lakh crore. The demerged value of the business was pegged at Rs 121.03, while the brokerage firms were expecting the fair value in the range of Rs 420-606 range, with an average fair value of Rs 463.2. Analysts attributed more value to the company than existing Vedanta itself.

Vedanta Power kicked-off its innings at stock market getting listed at Rs 41.80 with a total marketcap more than Rs 16,100 crore. The utility arm saw its fair value estimated in the range of Rs 10-60 in terms of SOTP valuations, with average value pegged around Rs 31-32 range as per the brokerage firms' reports.

Vedanta Oil & Gas and Vedanta Iron & Steel commanded the least value among the four. The former one was listed at Rs 39 with a mcap of Rs 15,250 crore, while the latter one was listed at Rs 22.25 with a valuation of Rs 8,700 crore. Their fair value was pegged at Rs 51-52 and Rs 19-20 respectively.

To recall, demerger process of Vedanta Ltd had carved out Rs 121.03 each for Vedanta Aluminium, Vedanta Oil & Gas and Vedanta Power while Vedanta Iron & Steel was given a value of Rs 121.02, as per the data from NSE.

Leading brokerages including Nuvama, Kotak, ICICI Securities, CLSA, Investec, Motilal Oswal, Systematix and others highlighted debt allocation as a key focus area, with a focus on being debt-free, capex, capacity and dividend policy being the key factors to determine the fair value of these stocks.

One should note that all the four debutants from the Vedanta Group shall remain in trade-to-trade segment (T-segment) for first 10 trading sessions. It means that intra-day buying and selling is not allowed in these counters and one must take the delivery of them. Similarly, the circuit filter shall remain five per cent in either directions to cap the volatility in them.