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Vedanta: Mega Demerger finally sees the light of the day

ICICIdirect Research 24 Apr 2026 DISCLAIMER

Vedanta has announced a 1st May 2026 as the record date for its long-awaited demerger (announced in September 2023).
The demerger will result in the creation and eventual listing of five separate entities

  • Vedanta Aluminium
  • Vedanta Power
  • Oil & Gas
  • Iron & Steel
  • Vedanta (Residual Entity)

The demerger will be executed as a simple vertical split. For every 1 share of Vedanta Ltd held, shareholders will receive 1 share in each of the four new entities.
The residual Vedanta entity will continue to remain listed and will house key businesses including Hindustan Zinc, Zinc International, Copper, and ferro chrome, among others.
Accordingly, on 30th April 2026, Vedanta’s stock price is expected to adjust for the demerger and trade in the range of ~₹300-325 per share, compared to the current market price of ~₹725.
Rest of the four entities will list in due course of time (1-2 months).
The revised sum of the parts (SoTP) valuation for all resulting entities combined is estimated at ₹820 per share, indicating upside from the current levels of ₹725 per share.
Among the demerged businesses, Vedanta Aluminium remains the most attractive, with an expected listing valuation of ₹400+ per share, driven by its strong contribution to group revenues and margins. Additionally, tight global supply conditions have supported elevated aluminium prices, while ongoing capacity expansions will drive volume growth, resulting in robust growth prospects ahead for the company.


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.
 

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