Vedanta demerger: Anil Agrawal-led mining major Vedanta Ltd has announced May 1 as the record date to determine the eligibility of shareholders for its much-awaited demerger or scheme of arrangement. The parent company has also approved the demerger ratio for its all newly spun-off businesses.

However, one should note that stock markets shall observe a public holiday on May 1, Friday on the account of Maharashtra Day. This means that Thursday, April 30 shall serve as the ex-date for the demerger and investors need to buy the stock of the consolidated entity on Wednesday, April 29 to become eligible for the demerger of shares.

Investors buying the stock on or after this date will not be eligible for the demerger benefit, while those purchasing shares before the ex-date will qualify for the demerged entities, which shall be listed on the bourses later on. India follows a T+1 settlement cycle, which means that investors need to buy at least one trading day before the ex-date to be eligible for such actions.

Eligible shareholders of Vedanta will get one share each of  Vedanta Aluminium Metal (VAML), Talwandi Sabo Power (TSPL), Malco Energy (MEL) and Vedanta Iron and Steel (VISL) post demerger for each share of Vedanta held as on the record date. It will conduct a special price discovery session between 9:15-9:45 am on April 30, with normal trading beginning from 10 am.
 

Listing of demerged entities

Listing timelines for demerged may vary, ranging from a few weeks to several months, depending on regulatory clearances and operational requirements. In the case of Vedanta, each demerged entity will need to go through separate approval processes before being listed. Vedanta's demerger plan received approval from the National Company Law Tribunal (NCLT) in December 2025.
 

Should you buy Vedanta stock?

Post demerger, one share becomes ownership in five focused businesses. The idea behind the split is to let each business run more independently, which could help the market value them more clearly over time, said Dr Ravi Singh, Chief Research Officer at Master Capital Services. "Many past demergers have eventually led to better price discovery once the new shares start trading freely."

A single conglomerate often trades at a discount because the market cannot clearly see the individual worth of each business. When you separate them, each entity gets valued on its own merit. If you are a long-term investor who believes that the underlying businesses are okay with commodity ups and downs, holding through the demerger could make sense, Singh added.

Sunny Agrawal, Head of Research at SBI Securities believes the fair value of Vedanta to be Rs 880-900 over a time horizon of 12-18 months, implying an upside potential of 20-23 per cent from Tuesday's lows. Out of the total fair value, 54 per cent/33 per cent is attributed to the Vedanta Aluminium Metal and Vedanta business - which is currently listed in Zinc and base metals post demerger.

He has cited LME Aluminium, LME Zinc and Silver prices. as key upside or downside risks. "An investor can look to approach the stock, implying the fair value to be Rs 880-Rs 900 before the demerger record date," Agrawal from SBI Securities adds.
 

Vedanta share price

Shares of Vedanta dropped nearly 4 per cent from day's high to Rs 728.90 on Monday, with its market capitalization slipping below Rs 2.9 lakh crore. The stock is down 8 per cent from its 52-week high at Rs 794.90, hit a week ago, on April 21. Despite this, the stock is up 25 per cent in 2026 so far.