Shares of four firms, namely Vedanta Aluminium, Vedanta Power, Vedanta Oil & Gas, and Vedanta Iron & Steel, were listed in the on Monday, 15 June, following a special pre-open session, marking the final leg of the demerger of one of India’s most prominent metal and mining companies.
The much-anticipated is expected to unlock substantial value for shareholders, as each company will now operate as a separate business entity, allowing investors to invest in a specific sector.
Shares of Vedanta Aluminium listed at ₹522 on the NSE and ₹527 on the BSE. Vedanta Power share price opened at ₹41.80 on the NSE and ₹41.30 on the BSE. Vedanta Oil & Gas share price debuted at ₹38 and ₹39, while Vedanta Iron and Steel shares opened at ₹20 and ₹21 on the NSE and BSE, respectively. Soon after listing, the stocks declined to their 5% lower price bands on the BSE, as investors booked profits.
The combined implied value of the five Vedanta entities amounts to ₹943.5 per original Vedanta share, based on the debut prices. This is around 18% higher than Vedanta’s pre-demerger closing price of ₹773.25 on April 29.
An investor can look to buy the shares of Vedanta Aluminium Metal Ltd on the back of robust capacity expansion of aluminium and strong LME Aluminium prices, advised Sunny Agrawal, Head of Fundamental Research at SBI Securities.
Vedanta Demerger Details
Vedanta’s demerger was approved by the National Company Law Tribunal (NCLT) in December last year.
Under the 1:1 approved demerger scheme, shareholders received one share of each demerged company for every one share held in the currently listed Vedanta Ltd.
Following the listing of the demerged entity, Vedanta shares pared prior gains in the stock market and hit the day’s low of ₹304.70 on the BSE today. Still, the stock trades above the demerged price of ₹291.
Vedanta had earlier said that the demerger will help in simplifying Vedanta’s corporate structure with sector-focused independent businesses and provide opportunities to global investors, including sovereign wealth funds, retail investors and strategic investors, with direct investment opportunities in dedicated pure-play companies linked to India’s remarkable growth story through Vedanta’s world-class assets.
It will also provide a platform for individual units to pursue strategic agendas more freely and better align with customers, investment cycles and end markets, it added.
(With inputs from PTI)
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