Synopsis: Shares of Vedanta Limited plunged nearly 65% after trading ex-demerger, reflecting a price adjustment as key businesses were spun off, while investors remain eligible for shares in newly listed entities.
The shares of this company engage in the exploration, production and sale of zinc, lead, silver, copper, aluminium, iron ore and oil & gas and it has presence across India, South Africa, Namibia, Ireland, Liberia & UAE are in the spotlight after it fell by 65% after trading ex-demerger.
With a market capitalisation of Rs. 1,09,060 cr, the shares of Vedanta Ltd were trading at Rs. 279 per share, making a low of Rs. 271.50, falling by 65% from yesterday’s closing price of Rs. 773.25 per share.
What’s the News
Shares of Vedanta Limited saw a sharp price adjustment following its demerger, with the stock settling at Rs. 289.50 per share on the National Stock Exchange of India (NSE) and Rs. 290.50 per share on the BSE Limited (BSE). This adjustment reflects the exclusion of the demerged business segments from the parent entity’s valuation.
It is demerging its businesses into four key entities such as Aluminium, Power, Oil & Gas, and Iron & Steel companies, which will be listed separately. Going ahead, the company has indicated that four separate demerged entities are expected to be listed by the end of June, which could further unlock value for shareholders as each business begins trading independently.
It has set May 1, 2026, as the record date for its demerger, meaning only shareholders holding the stock as of the previous closing session will be eligible to receive shares in the newly demerged entities. As part of the restructuring, investors will receive one share of each new entity for every one share held, effectively splitting the business into multiple independent verticals.
Post-demerger, the core listed entity will primarily comprise its 60.71% stake in Hindustan Zinc Limited, along with Zinc International operations and the copper business. According to Nuvama Wealth Management, the company’s pre-demerger valuation stood at Rs. 936 per share, with the ex-demerger Vedanta estimated at around Rs. 336 per share, while the Hindustan Zinc stake alone accounts for Rs. 317 and other base metal businesses contribute a smaller portion.
About the company
Vedanta Limited is a diversified natural resources company with operations across metals, mining, oil & gas, and power. It has a strong presence in zinc, aluminium, and iron ore through its subsidiaries and global assets. The company is known for its large-scale operations, consistent dividend payouts, and significant contribution to India’s resource sector.
On a sequential basis, the company reported strong growth in Q4 FY26, with revenue rising to Rs. 51,524 crore from Rs. 45,899 crore in Q3 FY26, up 12.3%. EBITDA increased 21.6% to Rs. 18,447 crore, while profit after tax grew nearly 19.8% to Rs. 9,352 crore, reflecting improved operating performance and healthy earnings momentum.
On a year-on-year basis, performance remained robust, with revenue up 29.5%, EBITDA surging 58.8%, and profit after tax jumping 88.5% in Q4 FY26. For the full year, revenue grew 15.5% to Rs. 1,74,075 crore, EBITDA rose 28.6% to Rs. 55,976 crore, and profit increased 22.2% to Rs. 25,096 crore, indicating strong overall profitability.
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