Vedanta Demerger: What SEBI rules say about listing timeline

Vedanta Demerger: Shares of the four newly demerged entities of Vedanta Limited have started reflecting in investors’ demat accounts. Shareholders have also started receiving SMS and email alerts about share credit from depositories.

Now that the allotment process is on, investors are looking at the listing time frame of these firms. As per rules prescribed by the Securities and Exchange Board of India, demerged entities need to complete a series of regulatory steps before trading can commence on stock exchanges.

Here is a look at the expected listing timeline and the key SEBI rules governing the process.

What SEBI rules say

Under SEBI’s framework for demerged entities, newly allotted shares are first credited to shareholders’ demat accounts before listing approval is granted.

The shares remain frozen during this period and cannot be traded until stock exchanges give final permission.

Stock exchanges also have various checks for compliance before they allow trading. These include disclosure requirements, shareholding norms and other listing conditions. Usually, the listing process takes around 30 to 45 days from the date of record. In several past demerger cases, trading started within four to eight weeks.

Based on usual timelines, Vedanta’s demerged entities could potentially list by mid-June 2026, subject to regulatory approvals.

Why the shares are showing as ‘unlisted’

The newly allotted shares are currently appearing under a “temporary ISIN” or “unlisted” section in demat accounts.

This is a standard process in demergers. Shares are first credited to investors before they become available for trading on exchanges.

During this phase, investors can see the shares in their holdings, but no live market price is available.

Investors who received the shares have also got alerts from Central Depository Services Limited and National Securities Depository Limited confirming the share credit.

Four new companies created

As part of the restructuring, Vedanta’s business will be split into five separate entities.

The four newly created companies are:

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

The existing Vedanta Limited will continue to hold businesses such as its stake in Hindustan Zinc Limited, zinc international operations, copper, and ferro chrome.

Demerger ratio

Vedanta is implementing the demerger in a 1:1 ratio.

For every one Vedanta share held, investors have received one share each in the four newly created companies. They will also continue to hold their existing Vedanta shares.

This means shareholders will effectively own five shares after the demerger process is completed.

Strong Q4 earnings

Vedanta recently reported record quarterly earnings for the March quarter of FY26.

• Profit after tax rose 89 per cent year-on-year to Rs 9,352 crore. Revenue increased 29 per cent to Rs 51,524 crore.
• EBITDA climbed 59 per cent to Rs 18,447 crore, while EBITDA margin stood at 44 per cent.
• The company said higher production, better metal prices, improved premiums, and forex gains supported performance.
• Return on capital employed improved to nearly 32 per cent. Net debt-to-EBITDA ratio also improved to 0.95 times, its best level in 14 quarters.