Vedanta Demerger: Shares of four newly demerged entities of Vedanta Limited have started reflecting in investors’ demat accounts, but trading in these shares is still some time away.
The new shares are currently appearing under a “temporary ISIN” or “unlisted” section in demat holdings. Investors who received the shares have also got SMS and email alerts from depositories such as Central Depository Services Limited and National Securities Depository Limited confirming the credit.
However, these shares remain frozen for now and cannot be bought or sold until the companies complete the listing process on stock exchanges.
Why shares appear as unlisted
After a demerger, newly allotted shares are first credited to investors’ demat accounts before they begin trading on exchanges.
During this interim period, the shares usually appear under a temporary ISIN with no live market price. Companies need to get approvals from regulators, like Securities and Exchange Board of India, and clearance from stock exchanges before listing can happen.
Typically, the process takes around 30 to 45 days from the record date. In most of the past demerger cases, trading begins within four to eight weeks after the record date.
This means Vedanta’s four demerged entities could potentially list by mid-June 2026, subject to regulatory approvals.
Four new companies created
As part of the restructuring, Vedanta’s diversified business will be split into five separate entities.
The four newly created companies are:
- Vedanta Aluminium Metal Ltd.
- Vedanta Power Ltd.
- Vedanta Oil and Gas Ltd.
- Vedanta Iron and Steel Ltd.
The existing Vedanta Limited will continue to house businesses including its stake in Hindustan Zinc Limited, zinc international operations, copper, and ferro chrome businesses.
How the demerger ratio works
Vedanta is implementing the demerger in a 1:1 ratio.
For every one Vedanta share held, investors have received one share each in the four newly created companies. Shareholders will also continue to hold their existing Vedanta shares.
Effectively, investors will own five shares after the entire demerger process is completed.
Record Q4 earnings support restructuring story
Vedanta recently reported its highest-ever quarterly profit and revenue for the March quarter of FY26.
Profit after tax surged 89 per cent year-on-year to Rs 9,352 crore, while revenue rose 29 per cent to Rs 51,524 crore.
EBITDA climbed 59 per cent to Rs 18,447 crore, with EBITDA margin at 44 per cent.
The company attributed the strong performance to higher production volumes, improved London Metal Exchange prices, better premiums, and forex gains.
Operationally, return on capital employed improved to nearly 32 per cent, while the net debt-to-EBITDA ratio strengthened to 0.95 times, the best level in 14 quarters.
Anil Agarwal calls demerger a pivotal step
Anil Agarwal described the demerger as a “pivotal step” that would help create focused and globally competitive businesses.
In his message to shareholders, Agarwal said FY26 marked a historic year for the group, supported by record financial performance and strong shareholder returns.
He added that the restructuring would pave the way for the next phase of growth and value creation through sharper strategic focus and independent growth pathways for each business.
