Stocks
Vedanta Limited share price ended 3.57% lower at Rs 304.25 per share on Monday, June 8. The metal-to-mining giant is witnessing heightened investor interest owing to the ongoing demerger process and the anticipated listing of the demerged entities.
As per Vedanta’s BSE filing, the company’s planned demerger will carve out Malco Energy (soon to be renamed Vedanta Oil & Gas), Talwandi Sabo Power ( renamed Vedanta Power), Vedanta Aluminium Metal, and Vedanta Iron and Steel from the parent entity. With these core businesses set to exit Vedanta, a crucial question emerges: what will the main Vedanta stock actually reflect post-demerger? Let’s find out.
Vedanta Demerger Recap
The Anil Agarwal-led mining giant had fixed the demerger record date as May 1, and all the investors who owned Vedanta stock before April 29 were eligible for other shares. Vedanta share price started trading its post demerger value from May 1. Eligible Vedanta shareholders will get shares of remaining four entities in the ratio of 1:1.
Vedanta Demerger: What Does the Vedanta Stock Represent Post 1-to-5 Split?
AS per Vedanta’s press release, Vedanta will not reflect its core aluminium, iron ore and power business post demerger. The residual company will represent critical minerals, zinc, lead and new emerging businesses.
Residual Vedanta may remain the steadier anchor because the base metals exposure provides earnings visibility, according to Harshal Dasani, Business Head, INVasset PMS.
Vedanta Portfolio Post Demerger
Hindustan Zinc will make up as one of the main entities under the Vedanta portfolio post demerger. Hindustan Zinc is one of the world’s largest silver producers.
Next on the list is Zinc International, where the production capacity is targeted to expand from 0.3 million tonnes per annum to 1 million tonnes per annum by the end of the decade.
Third on the list is the Copper Business, which is set to evolve into a 1 MTPA custom copper producer. Additionally, FACOR, one of India’s largest ferrochrome producers, will remain part of Vedanta’s portfolio.
Vedanta Nicomet, now renamed as Vedanta Nico, is also a division of Vedanta and has a dominance in production of primary nickel and cobalt sulphate.
Vedanta Share Price Trend
Vedanta share price closed lower at Rs 304.25 per share on Monday. The stock had touched an intraday high of Rs 314.85 and an intraday low of Rs 311.95 per share. The stock value has declined around 9.79% in one week, but has surged close to 2.63% in one month.
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