Mumbai, June 15: Shares of Vedanta Group’s newly demerged entities witnessed profit booking on Dalal Street on Monday, with Vedanta Aluminium Metal and Vedanta Oil & Gas hitting the lower circuit after the long-awaited restructuring exercise while Vedanta Iron and Steel hit the upper circuit. Vedanta Power remained the only unfrozen stock still trading at the time of writing.
The listing marked the culmination of Vedanta’s demerger plan, under which the conglomerate carved out four businesses—Vedanta Aluminium, Vedanta Power, Vedanta Oil & Gas and Vedanta Iron & Steel—into separately traded companies. Existing Vedanta shareholders received one share in each of the new entities for every Vedanta share held under the 1:1 demerger scheme.
Aluminium Gives Up Early Gains
Vedanta Aluminium Metal got locked in lower circuit ion debut. Analysts had expected the aluminium business to command the highest valuation among the demerged entities owing to its scale. Source: NSE
Vedanta Aluminium, which debuted at ₹522 per share and was widely viewed as the most valuable among the spun-off businesses, came under selling pressure after listing and fell about 5%, erasing a part of its initial gains and hitting the lower circuit. Analysts had expected the aluminium business to command the highest valuation among the demerged entities owing to its scale, profitability and position as one of the world’s lowest-cost aluminium producers.
Market participants attributed the decline largely to profit-booking by investors who had accumulated Vedanta shares ahead of the demerger in anticipation of value unlocking.
Oil & Gas Locked in Lower Circuit
Vedanta Oil & Gas, which listed at ₹38 per share, was locked in the lower circuit during its debut session. The stock’s weakness came despite the business being one of India’s largest private-sector oil and gas producers operating under the Cairn brand.
The oil and gas unit has outlined plans to significantly increase production over the next few years and is viewed as a key growth engine within the Vedanta ecosystem. However, traders appeared inclined to book profits after receiving shares through the demerger.
Iron & Steel Frozen in Upper Circuit, Power Rallies
Vedanta Iron and Steel debuted at Rs 20 and surged 5.3% to freeze in the upper circuit. Ahead of the listing, the Congress’ Goa unit urged Sebi to suspend the listing of Vedanta Iron and Steel, alleging that Vedanta Ltd had omitted disclosure of a Rs 16,500-crore liability related to mining activities in Goa.
Vedanta Power was the only stock unfrozen and still trading, up 2.6% at Rs 43.
Residual company Vedanta Ltd was down 0.8% at Rs 307.
Vedanta Power was the only demerger entity that did not freeze up on debut, rallying strong at the time of writing. Source: NSE
Vedanta’s demerger, first announced in 2023 and approved by the National Company Law Tribunal last year, is aimed at creating focused sector-specific companies that can pursue independent growth strategies and potentially command higher valuations. Following the restructuring, Vedanta Ltd will continue to house the base metals business, including its stake in Hindustan Zinc.
Investors and analysts will closely monitor how the newly listed entities trade over the coming weeks as the market discovers their standalone valuations. While the demerger has been widely viewed as a value-unlocking exercise, the initial volatility suggests investors are still assessing the growth prospects and fair value of each business independently.
Source
- https://www.nseindia.com/get-quote/equity/VAML/Vedanta-Aluminium-Metal-Limited
- https://www.nseindia.com/get-quote/equity/VOGL/Vedanta-Oil-and-Gas-Limited
- https://www.nseindia.com/get-quote/equity/VEDPOWER/Vedanta-Power-Limited
- https://www.nseindia.com/get-quote/equity/VISL/Vedanta-Iron-and-Steel-Limited
- https://www.nseindia.com/get-quote/equity/VEDL/Vedanta-Limited
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