Vedanta Demerger: Vedanta share price appeared to plunge 65% on Thursday, April 30, during a special pre-open session (SPOS). However, this sharp fall is purely technical and does not reflect any destruction of investor wealth, as the stock adjusted for its much-awaited demerger.
After the SPOS, the Vedanta stock opened at ₹289.50. Meanwhile, it hit its day’s high of ₹292 and day’s low of ₹271.50, implying a 65% decline from its previous close ( ₹773.60).
The decline comes as Vedanta began trading on an ex-demerger basis, meaning the stock price now excludes the value of its four newly carved-out businesses. For investors, this is a standard adjustment seen in corporate restructurings, where the parent stock price resets while shareholders receive proportional value in separate listed entities.
In simple terms, while the headline price looks significantly lower, the overall investment value remains intact, as shareholders will receive shares in the demerged companies.
To facilitate a fair price adjustment, exchanges conducted a special pre-open session between 9:15 am and 9:45 am. This mechanism helps determine the revised equilibrium price post-demerger before regular trading begins.
Normal trading in Vedanta shares commenced from 10:00 am following this session.
The demerger, effective April 30, 2026, will split the Anil Agarwal-led conglomerate into five independently listed companies. The restructuring is aimed at improving business focus, enhancing transparency, and unlocking value across verticals.
As part of the process, the company has set May 1, 2026, as the record date to determine eligible shareholders for share allotment in the new entities. However, trading will remain closed on that day due to the Maharashtra Day holiday on both BSE and NSE.
Under the approved structure, shareholders will receive shares in the demerged entities in proportion to their existing holdings, ensuring no dilution in ownership.
What investors should note
Before the adjustment, Vedanta shares had ended the previous session (April 29) nearly 5% higher at ₹773.60 on the NSE, reflecting investor optimism ahead of the restructuring.
The apparent 59% drop should therefore be viewed in context. The value hasn’t eroded — it has been redistributed across multiple listed entities.
For investors, the demerger could act as a long-term value unlock trigger, allowing each business segment to be valued independently based on its own fundamentals, growth prospects, and sector dynamics.
Vedanta Q4 highlights
Meanwhile, the Anil Agarwal-led metals and mining major reported its strongest-ever quarterly and annual financial performance for the period ended March 2026 (Q4FY26).
The company posted a record profit after tax (PAT) of ₹9,352 crore in Q4FY26, marking a sharp rise of 89% year-on-year (YoY) and 20% sequentially. Revenue for the quarter also reached an all-time high of ₹51,524 crore, growing 29% YoY and 12% quarter-on-quarter (QoQ), supported by higher London Metal Exchange (LME) volumes, improved premiums, and favourable forex gains.
Operationally, Vedanta reported its highest-ever quarterly EBITDA of ₹18,447 crore, reflecting a robust increase of 59% YoY and 22% QoQ. The growth was led by stronger commodity price realisations, higher volumes, and currency tailwinds. Notably, the EBITDA margin (excluding custom smelting at the copper business) expanded to a record 44%, improving by 915 basis points YoY and 306 basis points sequentially, indicating significant efficiency gains.
The company also rewarded shareholders with a dividend of ₹11 per share for Q4FY26.
On a full-year basis as well, Vedanta delivered its best-ever performance across key metrics. PAT for FY26 stood at ₹25,096 crore, rising 22% YoY, while revenue increased 15% YoY to ₹1,74,075 crore. EBITDA for the year came in at ₹55,976 crore, up 29% YoY, reflecting sustained operational strength and improved cost efficiencies across segments.
Commenting on the performance, Arun Misra said, “FY26 was a year of strong execution for Vedanta, with record operational performance across the portfolio. We delivered 2.9 million tonnes of alumina, 2.46 million tonnes of aluminium, 1.1 million tonnes of mined metal at Zinc India, 895 kt of pig iron and 101 kt of ferrochrome, reflecting improved operating efficiency alongside the ramp up of new capacities.”
Vedanta demerger details
Under the approved scheme, Vedanta will be split into five distinct entities: Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power, Vedanta Iron and Steel, and the parent entity, which will continue to operate as Vedanta Ltd. Each of these verticals will be independently listed, allowing investors to gain direct exposure to specific business segments.
The share entitlement ratio for the demerger has been set at 1:1. This means that shareholders holding Vedanta stock as of the record date will receive one equity share in each of the four newly demerged companies for every one share held in Vedanta Ltd. The structure ensures proportional ownership across all resulting entities.
Additionally, Vedanta will transfer its stake in Bharat Aluminium Company Ltd (BALCO) to Vedanta Aluminium Metal Ltd as part of the restructuring exercise, further streamlining its business verticals.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
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