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On June 15, after four newly established companies Vedanta Aluminum Metal, Vedanta Power, Vedanta Oil & Gas and Vedanta Iron & Steel got listed on the NSE and BSE, Vedanta’s demerger has completed its final phase. The restructuring was announced in September 2023 to streamline the company’s structure, unlocking shareholder value and attracting sector-specific investors.
Vedanta Aluminum Metal made the best debut with a listing price of Rs. 522 on the NSE and Rs. 527 on BSE, better than analysts' estimates of a Rs. 400+ listing price. The stock climbed to a high of Rs. 538 on an intraday basis, but later hit the 5% lower circuit at Rs. 500.65.
Vedanta Power opened at Rs. 41.80 on the NSE and Rs. 41.30 on the BSE and rose to an intraday high of Rs. 43.35, hitting a 5% upper circuit.
Vedanta Oil & Gas opened at Rs. 39 and fell to a 5% lower circuit at Rs. 37.05 after touching an intraday high of Rs. 40.95.
Vedanta Iron & Steel opened at Rs. 22.25 and dropped by over 5% to Rs. 21.05, with an intraday low of Rs. 19.60.
As per the market data, the implied value of all five entities of Vedanta is around Rs. 943.5 per original share of Vedanta compared to the closing price of Rs. 773.25 on April 29. This represents an 18% increase in shareholders' value.
The combined value of all five companies touched Rs. 3.55 trillion, compared to Rs. 3.02 trillion before the demerger process.
Earlier, the share price of the residual Vedanta Ltd rose by around 3% to hit an intraday high of Rs. 318.60 compared to the previous day's close of Rs. 309.50.
After the demerger, each entity now constitutes a specialized business:
Vedanta Aluminum Metal has a controlling interest in the aluminum business, including the smelters in Jharsuguda, BALCO, the alumina refinery in Lanjigarh and the captive coal and bauxite mines. The company also owns 51% of the shares of BALCO.
Vedanta Power holds 3 thermal power stations with a combined capacity of nearly 4780 MW, namely Talwandi Sabo (1980 MW), Meenakshi (1000 MW), Atena (1200 MW) and Jharsuguda IPP (600 MW).
Vedanta Oil & Gas (subsidiary of Cairn Oil & Gas) accounts for about 25% of the total crude oil and gas output in India and is the largest private oil producer in India.
Vedanta Iron & Steel has iron ore mines in Goa, Karnataka and Odisha, Liberia, along with the ESL Steel business.
The remaining Vedanta group will continue housing operations like Hindustan Zinc, Zinc International, Copper, Ferro Chrome.
Also Read: Vedanta Hits 52-Week High as Demerger, Growth Plans Fuel Rally
The exchange notes that the four companies that have been listed are in the Trade-to-Trade (T2T) segment for 10 trading sessions.
‘The scrips will be listed and admitted to dealings on the Exchange in the list of T Group of Securities and will be in trade-for-trade segment for 10 trading days,’ according to a notification issued by the BSE.
Intraday trading is not allowed in T2T and all T2T trade settlements are compulsory.
