Vedanta shares hit record high as demerger date is set; how it impacts your holdings

Vedanta Demerger Date: Shares of Vedanta Ltd jumped up to 3.11 per cent to hit a record high of Rs 795 on the NSE in early trade on Tuesday, April 21.

The rally came after the company confirmed the timeline for its demerger.

Vedanta share price

At around 10:53 am, the stock was trading at Rs 773.00, up Rs 2.00 or 0.26 per cent, after giving up part of the early gains.

Board approves record date and timeline

In an exchange filing, Vedanta said its board has approved May 1, 2026, as the effective date for the demerger.

The company also fixed May 1 as the record date. This will be used to identify shareholders eligible for the demerger benefits.

The decision is part of Vedanta’s ongoing restructuring plan to split its businesses into separate listed companies.

Vedanta Demerger: All you need to know

Investors must hold Vedanta shares in their demat accounts on the record date to be eligible.

Since May 1 is a market and bank holiday, April 29 will be the last trading day to buy shares to qualify.

Shares bought after this date will not be eligible for the demerger benefits.

1:1 demerger ratio

Vedanta will follow a 1:1 demerger ratio.

This means for every one share held, investors will receive one share in each of the four new companies.

After the restructuring, the group will have five listed entities:

• Vedanta Ltd (existing company)
• Vedanta Aluminium
• Vedanta Oil & Gas
• Vedanta Power
• Vedanta Steel and Ferrous Materials

Detailed structure of the demerger

As per the filing, different entities will issue shares to Vedanta shareholders:

Vedanta Aluminium Metal Ltd will issue one share of face value Rs 1 for each Vedanta share
Talwandi Sabo Power Ltd will issue one share of face value Rs 10 for each Vedanta share
Malco Energy Ltd will issue one share of face value Rs 1 for each Vedanta share
Vedanta Iron and Steel Ltd will issue one share of face value Rs 1 for each Vedanta share

After the scheme becomes effective:

• Talwandi Sabo Power Ltd will be renamed Vedanta Power Ltd
• Malco Energy Ltd will be renamed Vedanta Oil and Gas Ltd

Other key changes under the scheme

Vedanta said non-convertible debentures linked to its aluminium business will be transferred to Vedanta Aluminium Metal Ltd.

The company will also transfer its shareholding in Bharat Aluminium Company Ltd (BALCO) to the aluminium entity.

These steps are aimed at aligning assets with the respective business verticals.

Why the demerger matters

The company aims to unlock value by separating its businesses.

Each vertical will operate independently. This can improve efficiency and decision-making.

It can also give investors clearer visibility into each business.

Timeline and pending approvals

Vedanta has extended the deadline for completing the demerger to June 30, 2026.

The company said some regulatory approvals are still pending.

It had earlier delayed the timeline multiple times. The deadline was first March 2025, then September 2025, and later March 2026.

Vedanta delisting attempt in 2020

• Vedanta Ltd had planned to delist in 2020
• The delisting price was set at Rs 87.5 per share
• The plan failed in October 2020
• The failure was due to insufficient shares being tendered
• Most bids from investors came at around Rs 320 per share

Vedanta: Journey from FY21 to FY26

• Share price was Rs 64.70 at the start of FY21
• The stock delivered about 12.2x returns since then
• Total dividend of Rs 252 per share paid from FY21 to FY26
• Revenue grew at around 13 per cent over the last 5 years
• Average ROE stood at 24 per cent
• Net Debt to EBITDA ratio remained at 1.23x

Bullish view on Vedanta

• Anil Singhvi has been positive on Vedanta since 2020
• On October 6, 2020, he advised investors not to tender shares in the delisting
• The stock price was around Rs 138 at that time

Strong returns for investors

• Since October 6, 2020, the stock has delivered about 655 per cent return (around 7.5x) on adjusted basis
• On November 4, 2020, Anil Singhvi gave a buy call at Rs 92 per share
• Since then, the stock has delivered about 1032 per cent return (around 11.3x)
• Dividend-adjusted price stands at around Rs 1042 per share