Vedanta demerger: Fair value of stock post spin-off; should you hold demerged entities?

Vedanta Demerger price: Shares of Vedanta Ltd shall trade ex-price for demerger on Thursday, April 30, 2026 even as the company has announced a May 1, 2026, Friday as the record date. However, Friday being a market holiday, the stock will trade ex-spin off on Thursday itself. Investors buying shares on Thursday, shall not be eligible for demerger benefits.

The demerger of Vedanta will result in the creation and eventual listing of five separate entities on the stock exchanges including Vedanta, Vedanta Aluminium Metal Ltd (VAML), Talwandi Sabo Power Ltd (TSPL), Malco Energy Ltd (MEL), and Vedanta Iron and Steel Ltd VISL) under the applicable provisions of the Companies Act, 2013.

The demerger will be executed as a simple vertical split. For every one share of Vedanta Ltd held, shareholders will receive 1 share in each of the other four newly listed-bound entities. The residual Vedanta entity will continue to remain listed and will house key businesses including Zinc India (Hindustan Zinc), Zinc International, Copper, and ferro chrome, among others.

According to a report from ICICI Direct, Vedanta’s stock price is expected to adjust for the demerger and trade in the range of Rs 300-325 per share. This estimate is indicative, as we await exact allocation of net debt across the resulting entities. The residual Vedanta will drive bulk of its value from its stake in Hindustan Zinc, it said.

"The remaining demerged entities are likely to be listed within 1-2 months following the record date. The revised sum of the parts valuation for all resulting entities combined is estimated at Rs 820 per share. Thus, we advise investors to 'hold' onto the current Vedanta stock and play upon this demerger move as in sum total they stand to gain post listing of all entities," said ICICI Direct.

ICICI Direct noted that Vedanta Aluminium stands out as the most attractive entity, among the demerged businesses, with an expected listing valuation of over Rs 400 per share. "This is supported by its strong contribution to group revenues and margins, along with favourable industry dynamics such as tight global supply, elevated aluminium prices, and ongoing capacity expansions driving volume growth," it adds.

According to Nuvama Alternative Research, all the active derivatives contracts of Nuvama expired on April 29 and new contracts with new pricing and lot size shall be reintroduced on April 30 at 10:00 am, post settlement of prices after special pre-open session between 9.15-9.45 am.

Vedanta will continue to be a part of Nifty Next 50, while the other demerged entities will be reflected as dummy constituents until listing, said Nuvama. "Based on our market-cap estimates, Vedanta Ltd and Vedanta Aluminium are expected to be classified as Large Caps, while Vedanta Power, Vedanta Oil & Gas, and Vedanta Steel & Iron Ore fall under Small Cap."
 

Vedanta Q4 results

Vedanta reported a 80 per cent year-on-year (YoY) rise in its net profit at Rs 9,352 crore for the March 2026 quarter, driven by strong operational gains across businesses. Consolidated revenue for the January-March quarter rose 29 per cent YoY to Rs 51,524 crore. Ebitda surged 59 per cent YoY to Rs 18,447 crore, while margins expanded by 900 bps to 44 per cent.
 

About Vedanta

Vedanta, subsidiary of Vedanta Resources, is diversified natural resources conglomerate with presence across aluminium, zinc, lead-silver, oil and gas, power, iron ore, steel, ferroalloys and copper. Operating India’s largest primary aluminum metal capacity 2.8 MTPA. Its world’s largest zinc and lead producer with mined metal capacity of 1.2 MTPA and 4th largest silver producer globally.