Vedanta demerger leads to sharp share price drop

vedanta demerger — IN news

Vedanta’s share price dropped by nearly 65% following its strategic demerger into five separate entities on April 30, 2026. Before the demerger, shares traded at approximately ₹773. Afterward, they fell to around ₹290.

The demerger ratio stands at 1:5, meaning eligible shareholders will receive one new share in each of the four newly formed companies for every Vedanta share they hold. This restructuring aims to unlock value by separating different business segments.

As of midday, Vedanta’s market capitalization was reported at ₹1,08,141.78 crore. The company previously reached a 52-week high of ₹794.90 but now has a new low of ₹271.50 due to the recent adjustments.

Analysts have emphasized that Vedanta did not experience a market crash; rather, it underwent a necessary price adjustment post-demerger. “Vedanta didn’t actually crash 60%. What you saw was a price adjustment after the demerger,” one expert noted.

The new entities—Vedanta Aluminium Metal Ltd, Vedanta Power Ltd, Vedanta Oil & Gas Ltd, and Vedanta Iron and Steel Ltd—are expected to be listed within 4 to 8 weeks from the record date. Listing is anticipated around June to July 2026.

Investors should monitor the combined value of Vedanta Ltd and the new entities after their stock market listing. The revised sum of the parts (SoTP) valuation for all resulting entities combined is estimated at ₹820 per share, according to analysts at ICICI Direct.

Among the demerged companies, analysts believe Vedanta Aluminium stands out as the most attractive entity for investors moving forward.