Vedanta shares jump 5% after demerger. Should buy, sell or hold the stock?
The listing dates for the four newly demerged companies on the BSE and NSE have not been announced yet. However, Nuvama Institutional Equities, in its latest note, indicated that these entities are likely to debut on the exchanges in June 2026. Eligible shareholders will receive one share in each of the four new companies for every one share held in Vedanta as on the record date.
Should you buy Vedanta shares post demerger?
For the demerged Vedanta, Nuvama has set a target price of Rs 336 per share, indicating an upside of over 21% from its opening price of Rs 272 on the BSE following the special pre-open session last week.According to Harshal Dasani, Business Head at INVasset PMS, the demerger has made Vedanta a more focused entity, though it is now more concentrated in nature. He noted that the company’s value is largely tied to businesses such as Hindustan Zinc, base metals, semiconductors, display and stainless steel. While this shift could enhance transparency, it also means investors will need to reassess valuation compared to the earlier diversified structure.
He cautioned new investors against entering solely because the stock appears cheaper. He added that the investment case will hinge on factors such as debt allocation, valuations of the demerged entities, commodity cycles, dividend visibility and capital allocation discipline. While existing shareholders may gain from the clearer structure, he advised fresh investors to wait for better price discovery before taking a strong position.
Vedanta Q4 snapshot
Investor sentiment has also been supported by the company’s robust Q4 performance. The Anil Agarwal-led group reported a 92% year-on-year jump in consolidated net profit to Rs 6,698 crore for the January to March quarter of FY26, compared with Rs 3,483 crore a year ago. Revenue from operations rose 47% YoY to Rs 24,609 crore during the same period.
Vedanta demerger details
As a part of the demerger, each of Vedanta’s eligible shareholders will get one share of Vedanta Aluminium Metal (VAML), one share of Talwandi Sabo Power (TSPL), one share of Malco Energy and one share of Vedanta Iron and Steel, for every share held in Vedanta. However, the dates for the four new listings have not been disclosed yet.
Based on Nuvama’s market-cap estimates, Vedanta and Vedanta Aluminium are expected to be classified as large caps, while Vedanta Power, Vedanta Oil & Gas, and Vedanta Steel & Iron Ore fall under small-cap.
The company had fixed May 1 as the record date for the demerger, which coincided with a market holiday due to Maharashtra Day. As a result, the stock reflected the demerger adjustment after a special pre-open session held on April 30.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times.)
