Vedanta Demerger: The demerger of Vedanta Ltd has moved ahead. The company has crossed the May 1 record date. This date decides which shareholders are eligible for the share split.
The restructuring will break the diversified metals and mining business into five entities. This includes four newly created companies that will be listed separately.
The record date fell on Maharashtra Day. Markets were shut on that day. Investors who held shares before this date will be eligible for the new shares.
Vedanta share price
At around 11 AM, Vedanta shares were trading at Rs 300.85 on the National Stock Exchange of India. The stock was up Rs 6.20 or 2.10 per cent for the day.
The stock has seen strong buying interest. It has gained more than 13 per cent in the last two sessions. It also touched an intraday high of Rs 305.90.
Earlier, the stock had corrected sharply due to price adjustment on the ex-date. It had fallen to a 52-week low of Rs 268.70. From that level, the stock has rebounded.
Demerger structure explained
The company had first announced the demerger plan in September 2023. It later revised the plan. The structure was reduced from six entities to five. This shows a tighter and more focused business approach.
As per the exchange filing, the board has approved the demerger of core verticals into four separate companies. These include aluminium, power, oil and gas, and iron and steel businesses.
The four new entities will be:
- Vedanta Aluminium Metal Ltd.
- Vedanta Power Ltd.
- Vedanta Oil and Gas Ltd.
- Vedanta Iron and Steel Ltd (VISL).
The residual entity, Vedanta Ltd, will continue to hold key businesses. This includes its stake in Hindustan Zinc Ltd. It will also house zinc international, copper, and ferro chrome operations.
What shareholders will receive
As per the exchange filing, the demerger will be done in a 1:1 ratio.
For every one share of Vedanta, investors will receive one share in each of the four new companies. They will also continue to hold their existing Vedanta share.
This means that for every one share today, investors will have five shares after the demerger is completed.
This is why the move is often seen as a value unlocking exercise. Each business will trade separately. This can help in better price discovery.
When will shares be credited
The demerger scheme becomes effective from May 1, 2026.
Share credit to demat accounts usually takes 30 to 45 days from the record date. Investors will receive shares of the new entities within this period.
Depositories like Central Depository Services Limited will notify investors once the shares are credited.
Listing timeline
There is no official listing date yet for the four new companies.
As per market expectations, the company may soon approach stock exchanges for listing approvals. Each entity will require separate approvals and compliance checks.
Usually, the listing process takes a few weeks.
Based on past demergers, companies are usually listed within 4 to 8 weeks after the record date.
This means the four companies could be listed by mid-June 2026.
Q4 results highlights
As per the exchange filing, the company posted its highest-ever quarterly profit and revenue in Q4FY26.
Profit after tax stood at Rs 9,352 crore. It increased 89 per cent year-on-year and 20 per cent quarter-on-quarter.
Revenue came in at Rs 51,524 crore. It rose 29 per cent year-on-year and 12 per cent sequentially.
EBITDA stood at Rs 18,447 crore. It was up 59 per cent year-on-year and 22 per cent quarter-on-quarter. EBITDA margin stood at 44 per cent.
The company said the growth was driven by higher volumes, better LME prices, improved premiums, and forex gains.
Operational metrics also improved. Return on capital employed rose to nearly 32 per cent. Net debt to EBITDA ratio stood at 0.95 times. This is the best level seen in the last 14 quarters.
