According to exchange notices, Vedanta Oil & Gas, Vedanta Power, Vedanta Aluminium Metal and Vedanta Iron & Steel will make their much-awaited market debut on Monday. They will initially be placed in the Trade-to-Trade (T2T) segment, where every transaction results in compulsory delivery.
This follows the Anil Agarwal-led conglomerate’s announcement in April that each eligible shareholder would receive one share in each of the four companies for every share held in Vedanta, marking one of the biggest corporate restructurings in India’s metals and mining space. Vedanta set May 1 as the record date for the demerger. While Vedanta shares have already adjusted to the restructuring, investors are actively awaiting the listing of the four companies that spun out of it.
Here are the prices that the four new stocks can command when they list on Monday, as per analysts.
Vedanta Aluminium Metal share price
Vedanta Aluminium Metal will likely be the only large-cap stock among the pack that will list after the mega demerger. According to a report by Nuvama, the company is likely to debut with a market capitalisation of more than Rs 1.74 lakh crore, higher than the Rs 1.14 lakh crore market cap it had assigned for the parent Vedanta.
According to Sunny Agrawal, Head of Fundamental Research at SBI Securities, the fair value of Vedanta Aluminium Metal stands at Rs 489 apiece. “Notably, among the demerged businesses, Vedanta Aluminium stands out as the most attractive entity, with an expected listing valuation of Rs 400+ per share. This is supported by its strong contribution to group revenues and margins, along with favourable industry dynamics such as tight global supply, elevated aluminium prices, and ongoing capacity expansions driving volume growth,” said ICICI Direct in a report.
ICICI Securities remained the most bullish on the aluminium segment, as the ongoing war could lead to a higher-than-expected aluminium supply deficit. Calling the company the new “crown jewel” of the mining to metals conglomerate, it estimated the share price to be Rs 398 per share.
Also Read | Which demerged Vedanta stock should you buy after their market debut on June 15?Vedanta Aluminium Metal is the largest aluminium producer in India, according to the company. It produced more than half of India’s aluminium at 2.42 million tonnes in FY25, according to its website. It operates a 5 MTPA alumina refinery in Odisha’s Kalahandi district, along with the world’s largest aluminium plant at Jharsuguda, Odisha with 1.85 MTPA capacity. It also operates Bharat Aluminium Company Limited (BALCO) in Chhattisgarh.
Vedanta Power share price
Vedanta Power is likely to command a market capitalisation of Rs 17,466 crore at the time of its market debut, as per Nuvama’s report. Agrawal, meanwhile, expects the stock to command a fair value of Rs 44 per share.
For Vedanta Power, Emkay estimates a share price of around Rs 51.7 per share. Kotak Institutional Equities see the stock at Rs 60 per share, while Nuvama’s valuation implies a value of around Rs 47 per share. CLSA’s estimate corresponds to roughly Rs 35 per share.
Also Read | How will Vedanta’s mega restructuring impact dividend payouts for shareholders?
Vedanta Power has more than 4 GW of installed capacity in four strategic assets in Punjab, Andhra Pradesh, Chhattisgarh and Odisha. It has several long-term and mid-term Power Purchase Agreements (PPAs) with state utilities.
Vedanta Oil & Gas share price
According to Sunny Agrawal, Head of Fundamental Research at SBI Securities, Vedanta Oil & Gas commands a fair value of Rs 42 per share. Nuvama meanwhile expects the company’s market cap to be Rs 15,824 crore.
Vedanta Oil & Gas claims to be India’s leading private sector upstream player, as it aims to scale towards 300,000 to 500,000 barrels per day with an investment of $5 billion.
Vedanta Iron & Steel share price
Vedanta Iron & Steel is likely to debut on stock exchanges with a market cap of Rs 8,680 crore, as per Nuvama. Agrawal expects the stock to command a fair value of Rs 19 per share. The iron and steel business is likely to see little favour with investors as larger and more focused players make for a stronger investment case, according to experts.
Also Read | Check cost of acquisition for 4 new Vedanta stocks
Vedanta Iron & Steel has operations spanning India and Africa, and is focused on iron ore exploration, mining and processing. It also produces high-quality steel , wire rods, TMT bars, pig iron, Ductile Iron (DI) Pipes, Ferro-silicon, cement and metallurgical coke.
Vedanta share price
Vedanta shares adjusted to the mega demerger on April 30, appearing to have crashed nearly 63%. The stock opened at Rs 289.50 apiece on NSE following a special pre-open session.
Vedanta shares then saw a sharp surge, jumping 24% in 20 days to hit a high of Rs 360 apiece. The stock then declined 14% to close at Rs 309.65 apiece on Friday, although it still remains higher than its post-demerger adjustment level. The company’s market capitalisation at the end of the previous week stood at a little over Rs 1.21 lakh crore.
Also Read | Vedanta share price adjusts 63% as it trades ex-demerger. What’s next for 21 lakh shareholders?
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)