Vedanta Demerger: Shares surge ahead of June listings; here’s everything investors need to know about the stock now

Vedanta Share Price Today: Shares of Vedanta Limited traded higher in an otherwise weak market on Tuesday, May 12, as investors tracked developments related to the company’s much-awaited demerger process and the credit of shares in newly carved-out businesses.

The stock climbed as much as 3.85 per cent during the session to touch an intraday high of Rs 309.90. The shares closed at Rs 305.95, up 2.53 per cent from the previous close.

Share credit process gains momentum

Investor sentiment around the metals and mining major has strengthened after shareholders began receiving shares of the demerged entities in their demat accounts. Several investors reported that shares of businesses such as Malco Energy Limited, Vedanta Iron and Steel Limited and Talwandi Sabo Power Limited have started reflecting in their holdings.

Vedanta had conducted a special trading session for price discovery on April 30, 2026, ahead of the proposed restructuring into five separately listed entities, including the existing Vedanta business.

Under the demerger scheme, shareholders of Vedanta Ltd are entitled to receive one share of each of the four newly created companies for every one share held in Vedanta on the record date. Following the restructuring, investors will effectively own stakes across five sector-focused companies.

Five business verticals to operate independently

The demerger will split Vedanta into independent pure-play businesses spanning aluminium, oil and gas, power, steel and iron, and base metals.

The resulting companies include Vedanta Aluminium, which will house the group’s aluminium and alumina operations; Vedanta Oil & Gas under Malco Energy/Cairn; Vedanta Power through Talwandi Sabo Power; Vedanta Steel & Iron; and the residual Vedanta Ltd, which will continue to hold the base metals portfolio, including its stake in Hindustan Zinc Limited, copper and international zinc assets.

Listing of demerged entities expected by mid-June

The company had earlier indicated that shares of the demerged entities are expected to list and commence trading by mid-June. During the company’s Q4 earnings investor call, Vedanta Resources CEO Deshnee Naidoo said the demerger process has entered its final stage.
“In the next week, we will be filing with the exchanges for listing approval. The shares of the resulting companies are expected to list and commence trading by mid-June,” she had said.

Vedanta said the restructuring is aimed at simplifying the corporate structure, creating sector-focused businesses and unlocking value for shareholders. The company believes the move will attract a broader pool of investors, including sovereign wealth funds, strategic investors and retail participants seeking exposure to focused natural resources and energy businesses.

Record FY26 performance supports restructuring push

Last week, Vedanta Resources chairman Anil Agarwal said Vedanta Ltd delivered a record financial performance in FY26 while entering a transformational phase through the demerger.

According to Agarwal, the company reported its highest-ever profit after tax of Rs 25,096 crore on revenue of Rs 1,74,075 crore during FY26. He added that total shareholder return stood at nearly 50 per cent and the company paid a dividend of Rs 34 per share during the year.

Vedanta also improved its balance sheet position, with net debt-to-EBITDA falling to 0.95x, enhancing financial flexibility ahead of the restructuring exercise.

“The stage is set for the next phase of growth and value creation,” Agarwal said in a letter to shareholders, describing the demerger as a structural shift that will create globally competitive businesses with sharper strategic focus and independent growth pathways.

What investors should know about tax implications

Meanwhile, the demerger has also triggered questions among retail investors regarding taxation on the newly allotted shares. Tax experts clarified that shareholders do not have to pay tax merely on receiving shares through the demerger process. A tax liability arises only when investors eventually sell or transfer those shares.

Experts explained that in a demerger, the original purchase cost of shares gets proportionately divided between the demerged company and the resulting entities as per the formula prescribed under the Income-tax Act. Similarly, the holding period of the original shares is also carried forward to the newly allotted shares for determining whether capital gains qualify as short-term or long-term.

This means investors receiving shares in Vedanta’s demerged businesses will not face any immediate tax burden, with taxation applicable only at the time of actual sale of those shares.