Vedanta Demerger: Stock Plummets 65% Amid Investor Uncertainty

Vedanta Share Price Adjusts Following Demerger, Excluding Value of Four Newly Carved-Out Businesses

On Thursday, April 30, Vedanta's share price appeared to plunge 65% in a special pre-open session (SPOS), but this sharp fall is purely technical and does not reflect any destruction of investor wealth. The stock adjusted for its much-awaited demerger, resetting its price while shareholders receive proportional value in separate listed entities.

The Vedanta stock opened at ₹289.50 after the SPOS, hitting a day's high of ₹292 and a day's low of ₹271.50. This decline comes as Vedanta began trading on an ex-demerger basis, excluding the value of its four newly carved-out businesses. For investors, this is a standard adjustment seen in corporate restructurings, where the parent stock price resets while shareholders receive shares in the demerged companies.

To facilitate a fair price adjustment, exchanges conducted a special pre-open session between 9:15 am and 9:45 am. This mechanism helps determine the revised equilibrium price post-demerger before regular trading begins. Normal trading in Vedanta shares commenced from 10:00 am following this session.

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Demerger Details

The demerger, effective April 30, 2026, will split the Anil Agarwal-led conglomerate into five independently listed companies. The restructuring is aimed at improving business focus, enhancing transparency, and unlocking value across verticals. As part of the process, the company has set May 1, 2026, as the record date to determine eligible shareholders for share allotment in the new entities. However, trading will remain closed on that day due to the Maharashtra Day holiday on both BSE and NSE.

Share Entitlement Ratio

Under the approved scheme, shareholders will receive shares in the demerged entities in proportion to their existing holdings, ensuring no dilution in ownership. The share entitlement ratio for the demerger has been set at 1:1, meaning that shareholders holding Vedanta stock as of the record date will receive one equity share in each of the four newly demerged companies for every one share held in Vedanta Ltd.

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Vedanta Q4 Highlights

Meanwhile, the Anil Agarwal-led metals and mining major reported its strongest-ever quarterly and annual financial performance for the period ended March 2026 (Q4FY26). The company posted a record profit after tax (PAT) of ₹9,352 crore in Q4FY26, marking a sharp rise of 89% year-on-year (YoY) and 20% sequentially. Revenue for the quarter also reached an all-time high of ₹51,524 crore, growing 29% YoY and 12% quarter-on-quarter (QoQ), supported by higher London Metal Exchange (LME) volumes, improved premiums, and favourable forex gains.

Comparison of Vedanta's Q4FY26 Performance with Q3FY26 and Q4FY25

The company also rewarded shareholders with a dividend of ₹11 per share for Q4FY26. On a full-year basis as well, Vedanta delivered its best-ever performance across key metrics. PAT for FY26 stood at ₹25,096 crore, rising 22% YoY, while revenue increased 15% YoY to ₹1,74,075 crore. EBITDA for the year came in at ₹55,976 crore, up 29% YoY, reflecting sustained operational strength and improved cost efficiencies across segments.

Arun Misra's Comments

Commenting on the performance, Arun Misra said, "FY26 was a year of strong execution for Vedanta, with record operational performance across the portfolio. We delivered 2.9 million tonnes of alumina, 2.46 million tonnes of aluminium, 1.1 million tonnes of mined metal at Zinc India, 895 kt of pig iron and 101 kt of ferrochrome, reflecting improved operating efficiency alongside the ramp up of new capacities."