Vedanta Shares Plunge 63% to Rs 289.5 in Post-Demerger Trading Following Special Price Discovery Session

Vedanta Ltd Shares Plummet 62% After Ex-Demerger Price Determined

Vedanta Ltd shares experienced a sharp decline on Thursday, falling to Rs 289.5 on the National Stock Exchange (NSE) after a special pre-open session determined the stock's ex-demerger price. This represents a staggering 62% drop from the previous day's closing price of Rs 773.6.

The significant decline reflects the exclusion of value from four business verticals being spun off under the company's demerger plan. As of April 30, Vedanta shares are trading on an ex-demerger basis, ahead of the May 1 record date, which coincides with a market holiday.

As part of the restructuring, Vedanta will demerge its aluminium, power, oil & gas, and steel businesses into separate listed entities. Shareholders holding the stock as of the record date will receive one share each in the four new companies for every Vedanta share held. This move is aimed at simplifying Vedanta's corporate structure and unlocking value across its diversified portfolio by creating pure-play businesses.

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The exchange conducted a special pre-open session between 9:15 am and 9:45 am on Thursday to discover the adjusted price, since trading will remain shut on May 1 due to Maharashtra Day. The difference between Wednesday's closing price and Thursday's discovered price will be used to determine the valuation of the demerged entities.

Investors who purchased Vedanta shares on or before April 29 will be eligible to receive shares in the spun-off companies, while those buying from April 30 onwards will not qualify for the demerger benefits. The demerger is expected to improve transparency in financial reporting and allow investors to better assess the performance and valuation of each business segment individually, rather than as part of a diversified conglomerate.

Following the restructuring, Vedanta Ltd will continue as a listed entity, while the four verticals – aluminium, power, oil & gas, and steel – will be separately listed over time, subject to regulatory approvals and completion of necessary processes. The company has indicated that the demerger will become effective from May 1, with shareholders receiving shares in the newly created entities based on holdings as of the record date.

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