Vedanta Demerger: When will the new entities list on NSE and BSE?

Vedanta Demerger: Shares of Vedanta Limited fell nearly 3 per cent on Monday, June 1, after a strong rally over the past month, even as investors await the listing of the company's four demerged businesses.

The stock slipped to an intraday low of Rs 342.30 on the NSE. Despite the decline, Vedanta shares have gained nearly 20 per cent in the past one month following the completion of the price discovery process related to the demerger.

When can Vedanta's demerged companies list?

As per expected timeline, Vedanta's four demerged entities could be listed on the NSE and BSE by mid-June, subject to regulatory approvals and exchange clearances.

Under the regulatory process, shares of the demerged entities are first credited to shareholders' demat accounts before exchanges grant final listing approval. Shares are frozen and cannot be traded during this period.

Stock exchanges also see to it that norms on disclosures, shareholding and other listing requirements are complied with, before allowing trading.

Usually the listing process takes about 30-45 days from the date of record. In several previous demerger cases, trading commenced within four to eight weeks after share allotment.

Why are the shares showing as 'unlisted'?

While investors can see the demerged shares in their holdings, no live market price is available until the exchanges approve listing and trading.

Shareholders have already received confirmation messages from depositories regarding the credit of these shares.

Four new companies created under the demerger

As part of its restructuring plan, Vedanta is splitting its businesses 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 Ltd will continue to house businesses including its stake in Hindustan Zinc Limited, international zinc operations, copper and ferro chrome assets.

Demerger ratio explained

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, while continuing to retain their existing Vedanta shares.

Once the process is completed, shareholders will effectively hold shares in five separate Vedanta group companies.

Latest update from Vedanta

On May 29, Vedanta Group said it received its highest domestic credit rating in more than a decade after ICRA upgraded the long-term ratings of key group entities.

ICRA upgraded the long-term ratings of Vedanta Ltd and Vedanta Aluminium Metal Ltd to AA+ with a stable outlook. It also upgraded Talwandi Sabo Power Limited to AA- Stable from A+/Watch Developing.

The agency reaffirmed the group's short-term rating at A1+, the highest short-term rating category.

Vedanta said the upgrade reflects stronger profitability, improved liquidity and enhanced financial flexibility, while also highlighting the benefits expected from the demerger structure.

Strong Q4 performance

Vedanta reported record earnings for the March quarter of FY26.

Profit after tax surged 89 per cent year-on-year to Rs 9,352 crore, while revenue rose 29 per cent to Rs 51,524 crore.

EBITDA increased 59 per cent to Rs 18,447 crore, with EBITDA margin at 44 per cent.

The company attributed the strong performance to higher production, favourable commodity prices, improved premiums and foreign exchange gains.

Return on capital employed improved to nearly 32 per cent, while the net debt-to-EBITDA ratio strengthened to 0.95 times, marking its best level in 14 quarters.