Vedanta Demerger: Demat credit begins for 4 new entities; listing likely soon

Vedanta Demerger: Investors of Vedanta Ltd have started receiving shares of the company’s four newly created entities in their Demat accounts, marking a key milestone in the group’s much-awaited demerger process.

The shares were credited late on May 7, according to notifications sent by Central Depository Services Limited (CDSL). However, the shares are currently in a frozen state and cannot be traded yet.

Image: (Shares credited to Demat accounts but not tradable yet, an update recieved on Thursday from CDSL. Invested value may depending on purchase price.)

The demerger will split Vedanta’s diversified metals and mining business into five separate entities. Four newly created companies will be listed independently on stock exchanges. These include:

• Vedanta Aluminium Metal Ltd.
• Vedanta Power Ltd.
• Vedanta Oil and Gas Ltd.
• Vedanta Iron and Steel Ltd.

The residual Vedanta Ltd will continue to hold key businesses, including its stake in Hindustan Zinc Ltd, zinc international operations, copper, and ferro chrome businesses.

How the demerger works

As per the company’s exchange filing, the demerger is being carried out in a 1:1 ratio.

For every one share of Vedanta held by an investor, one share each in the four newly created companies has been allotted. Shareholders will also continue to hold their existing Vedanta shares.

Effectively, investors will own five shares after the demerger process is fully completed.

Market participants view the restructuring as a major value-unlocking exercise. Separate listing of businesses may aid in better price discovery and enable investors to value each vertical individually.

Listing timeline in focus

Vedanta has not yet announced an official listing date for the four demerged entities. But the company is expected to approach stock exchanges soon for listing approvals. Each entity will require separate regulatory clearances and compliance approvals before trading can begin.

Typically, demerged companies get listed within four to eight weeks after the record date, based on past market examples. This means the four entities could potentially debut on exchanges by mid-June 2026, subject to approvals.

Vedanta posts record Q4 earnings

Vedanta reported its highest-ever quarterly profit and revenue for the March quarter of FY26.

Profit after tax jumped 89 per cent year-on-year to Rs 9,352 crore. Sequentially, profit rose 20 per cent.

Revenue increased 29 per cent year-on-year to Rs 51,524 crore, while EBITDA surged 59 per cent to Rs 18,447 crore. EBITDA margin stood at 44 per cent.

The company said strong earnings were driven by higher production volumes, improved London Metal Exchange (LME) prices, better premiums, and forex gains.

Operational metrics also improved significantly. Return on capital employed rose to nearly 32 per cent, while net debt-to-EBITDA ratio improved to 0.95 times, the best level seen in the last 14 quarters.

Anil Agarwal’s message to shareholders

Vedanta Chairman Anil Agarwal described the demerger as a “pivotal step” that will create five focused and globally competitive businesses.

In a message shared with shareholders, Agarwal said FY26 was a “historic year” for Vedanta, supported by record financial performance and strong shareholder returns.

“The stage is set for the next phase of growth and value creation,” he said, adding that the restructuring would help create world-class companies with sharper strategic focus and independent growth pathways.