Vedanta Demerger: ITC Hotels, Tata Motors, Jio Financial Indicate Listing Timelines for Demerged Entities

Vedanta Share Price Falls Over 3% as Demerger Plan Unfolds

Vedanta's share price took a hit on Friday, extending losses for the fifth consecutive session, as the metals and mining major prepares to undergo a significant restructuring through a demerger. The Anil Agarwal-led conglomerate is set to split into five separate publicly listed companies: Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power, Vedanta Iron & Steel, and Vedanta Ltd.

As part of the scheme of arrangement, Vedanta shareholders will receive equity shares in the four newly demerged businesses in a 1:1 ratio. This means that eligible shareholders will be allotted one share in each of the new entities for every share held in Vedanta Ltd as on the demerger record date. The demerger record date has been fixed as May 1, and the company's board has also set May 1 as the demerger effective date.

However, since May 1 is a stock market holiday for 'Maharashtra Day', Vedanta shares will start trading ex-date for demerger from April 30, Thursday. For the purpose of price discovery, Vedanta Ltd will conduct a special pre-open session (SPOS) on April 30. The share prices of the demerged entities will be derived from the difference between Vedanta Ltd's closing price on April 29 and its opening price discovered during the SPOS on April 30.

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Listing Timelines for Demerged Entities

The listing of the demerged entities is expected to take time, as regulatory approvals and procedural requirements may span several weeks. According to Nuvama Alternative & Quantitative Research, recent demerger cases suggest that listing timelines can vary widely, from as little as three weeks to several months, depending on regulatory and operational factors.

As per Nuvama Alternative's assessment, given the scale of the demerger, listings should ideally be completed within 4–8 weeks at most. However, the actual timeline may vary across entities, depending on regulatory clearances and procedural requirements.

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