Vedanta Demerger: Timeline for Listing of Four Spun-Off Entities Unveiled

Vedanta's Demerger Takes Shape: Four Entities to List in Indian Stock Market by June

Ahead of the special session for the price discovery of the demerged Vedanta Limited, the metal and mining major's CEO Deshnee Naidoo provided investors with an update on the demerger process during an earnings call. According to a PTI report, Vedanta Resources will file with stock exchanges next week for listing approval of its demerged entities.

The demerger, which was earlier announced, will result in the creation of five independent companies, including Vedanta Aluminium Metal Limited (VAML), Talwandi Sabo Power Ltd (TSPL), Malco Energy Ltd (MEL), and Vedanta Iron and Steel Limited (VISL). As part of the demerger plan, Vedanta shareholders will receive one equity share in each of these four businesses for every share they currently hold, maintaining a 1:1 ratio.

The listing of these entities is expected to take place in mid-June, with Vedanta's India arm filing for listing approval next week. The shares of the resulting companies are expected to list and commence trading by mid-June. Vedanta CFO Ajay Goel has stated that the company is targeting listing and commencement of trading of these shares by the first quarter of FY'27.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

In preparation for the demerger, Vedanta had set May 1 as the effective and record date for the creation of the five independent companies. However, with Friday, May 1, being a stock market holiday, April 29 was the last day to purchase the shares to participate in the demerger process.

Comparison of Demerged Entities

The demerged price for Vedanta shares is estimated to be around ₹300 apiece, while the residual Vedanta Ltd is likely to open in the ₹300–325 band, anchored largely by its 63.4% stake in Hindustan Zinc, copper, ferro chrome, and the emerging displays venture, estimates Harshal Dasani, Business Head at INVasset PMS.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

The special pre-open session on April 30 is the moment Vedanta's three-year-old demerger story finally meets the market's price-discovery machinery. Normal trading will start from 10:00 AM at the ex-demerged price.