Shares of Vedanta Ltd are set to be removed from MSCI Global Standard Indexes effective June 22, 2026, following the completion of the company's landmark demerger that split its businesses into five separately listed entities.
MSCI announced on Tuesday that the residual Vedanta entity will be deleted from its Standard and Large Cap indices after the spin-off, citing the sharp reduction in its market capitalisation following the restructuring.
The move comes days after the final phase of the demerger was completed. On June 15, four newly carved-out businesses, Vedanta Power Ltd, Vedanta Iron and Steel Ltd, Vedanta Aluminium Metal Ltd and Vedanta Oil and Gas Ltd., began trading on Indian stock exchanges, marking the culmination of one of the country's largest corporate restructurings in the metals and mining sector.
The demerger, approved by the National Company Law Tribunal (NCLT) in December 2025, transformed Vedanta into a holding company while unlocking separate listings for its key business verticals.
Under the restructuring scheme, shareholders who held Vedanta shares before the May 1, 2026 record date received one share each in Vedanta Aluminium Metal, Vedanta Power, Vedanta Oil and Gas and Vedanta Iron and Steel for every Vedanta share owned.
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Among the newly listed companies, Vedanta Aluminium emerged as the largest entity by market value. The stock debuted at Rs 527 per share on the BSE, translating into a market capitalisation of approximately Rs 2.06 lakh crore, surpassing the valuation of the parent company. Vedanta Power was listed at Rs 41.30 per share, while Vedanta Oil & Gas and Vedanta Iron & Steel debuted at Rs 39 and Rs 22 per share, respectively.
The four demerged companies have been placed under the trade-for-trade (T2T) segment. In this category, intraday trading is not permitted and all trades must result in compulsory delivery of shares. Investors purchasing shares in these entities can therefore sell them only from the next trading session onward.
Market participants will be closely watching the impact of Vedanta's exclusion from MSCI indices, as passive funds and exchange-traded funds tracking the benchmark may need to rebalance their portfolios ahead of the June 22 effective date.
On Tuesday, Vedanta shares declined 0.83% to Rs 300.10. Vedanta Aluminium and Vedanta Oil & Gas hit their lower circuits and were down 5% each at Rs 475.65 and Rs 35.20, respectively. In contrast, Vedanta Iron & Steel gained 5% to Rs 22.10, while Vedanta Power edged up 0.12% to Rs 41.
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