Vedanta Ltd. shares went ex-trade for the demerger on Thursday. This means the share price now excludes the value of its four demerged entities following the price discovery during the special pre-open session on the exchanges. For shareholders, the scrip will appear to be significantly lower in absolute value but, in reality, it will simply adjust to the much-awaited corporate restructuring.
Ahead of the ex-date, the stock closed at Rs 773.25 on the BSE and Rs 773.60 on the NSE in the previous session.
After the special trading session today, the share price settled at Rs 289.5 on the NSE and Rs 290.5 on the BSE. Regular trading opened at 10:00 a.m., after which the stock fell 6.2% to Rs 271.50.
The stock is also reacting to the fourth quarter results announced on Wednesday.
The board has set May 1 as the record date for the demerger.
About The Vedanta Demerger
As part of the demerger, Vedanta's aluminium, power, oil and iron business arms will be spun off into separate listed entities. The existing shareholders will be eligible to receive an equal number of shares in each of the demerged entities.
The move is aimed at unlocking value, improving operational efficiencies, and allowing each business to pursue independent growth strategies aligned with its sector dynamics.
Under the demerger scheme, existing shareholders of Vedanta will receive one share in each of the newly created entities for every one share held in the parent company. Specifically, investors will be allotted one share each in Vedanta Aluminium Metal Ltd (VAML), Talwandi Sabo Power Ltd (TSPL), Malco Energy Ltd (MEL), and Vedanta Iron and Steel Ltd (VISL).
The restructuring marks one of the most significant corporate overhauls in India's natural resources sector in recent years.
The restructuring is part of the group's broader effort to simplify its business structure and support debt reduction.
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