Vedanta's Demerger: A New Chapter
The Vedanta Group's extensive metal and mining business has officially split into five distinct entities, with four new companies commencing trading on Monday, June 15, 2026. This strategic demerger sees Vedanta Oil & Gas, Vedanta Power, Vedanta Aluminium Metal, and Vedanta Iron & Steel listed individually, alongside the existing Vedanta Ltd.
Understanding the Initial Price Movements
Ahead of their official market open, some trading applications displayed steep indicative falls for several of these new Vedanta stocks, with some showing declines of up to 83 percent. However, these figures were merely preliminary. The true market valuation for these newly listed entities was determined following a special pre-open trading session held on June 15.
Divergent Fortunes: Aluminium Soars, Iron & Steel Dips
To understand the dramatic shifts, it's important to note the pre-demerger value of Vedanta shares. The parent company's shares settled at Rs 773.60 on April 29, before the demerger took effect. Post-demerger, standalone Vedanta, excluding the demerged businesses, settled at Rs 293.50 on April 30.
The net subtracted value of Rs 480.1 was notionally spread equally among the four new companies, assigning each an indicative value of Rs 120.02.
Following the special pre-opening session, the market assigned vastly different valuations:
- Vedanta Aluminium Metal settled at Rs 527 on the BSE, indicating a remarkable 330-335 percent rise for investors compared to its notional value.
- Conversely, shares of Vedanta Iron & Steel settled at Rs 20, reflecting an approximate 83.47 percent fall from its notional base.
- Similarly, Vedanta Power experienced an indicative fall of up to 66 percent in its value, while Vedanta Oil & Gas signaled a roughly 69 percent crash in its stock price.
It is crucial for investors to recognize that the precise magnitude of these rises and falls may vary slightly between exchanges (BSE and NSE) and as normal trading sessions progress, due to ongoing market corrections.
Trading Restrictions and Volatility Measures
To manage initial volatility, all four newly listed Vedanta Group companies will operate under the trade-to-trade (T2T) segment for their first 10 trading sessions. This means intraday trading will not be permitted, and all transactions will require compulsory delivery. Additionally, these stocks are subject to a 5 percent upper and lower circuit limit, further designed to contain extreme price swings.