Vedanta's four demerged entities set to debut on stock exchanges on June 15
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Vedanta Group's four newly demerged businesses are expected to begin trading on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on Monday, marking a major milestone in the conglomerate's restructuring plan, according to sources.
The four entities -- Vedanta Aluminium Metal (VAML), Vedanta Oil & Gas (VOGL), Vedanta Power and Vedanta Iron & Steel (VISL) -- will be listed separately, alongside the already listed Vedanta Ltd.
The demerger is widely seen as a move that could unlock significant shareholder value by creating focused, sector-specific businesses with independent management and capital allocation strategies. The restructuring is also expected to offer investors the flexibility to invest in individual sectors rather than through a diversified holding company.
The National Company Law Tribunal (NCLT) approved Vedanta's demerger proposal in December last year. Under the approved 1:1 share entitlement ratio, shareholders will receive one share of each of the four newly created companies for every share held in Vedanta Ltd.
Speaking during an investor call following the company's fourth-quarter earnings, Vedanta Resources Chief Executive Officer Deshnee Naidoo had indicated that the demerged entities would begin trading by mid-June.
Vedanta has said the restructuring will simplify its corporate structure by creating independent, sector-focused businesses and provide direct investment opportunities to a broader pool of investors, including sovereign wealth funds, strategic investors and retail shareholders.
The company believes the new structure will allow each business to pursue its growth strategy more effectively, improve alignment with customers and market cycles, and enhance operational agility in their respective sectors.
The listing of the four companies is expected to be closely watched by investors and analysts, who will assess the standalone valuations and growth prospects of each business following one of the largest corporate restructuring exercises in India's mining and natural resources sector.
The demerger plan was first announced in September 2023 as part of billionaire Anil Agarwal’s strategy to create pure-play businesses across its key sectors. The company had initially proposed six separate listed entities, but the final structure was streamlined into five businesses, including Vedanta Ltd.
The move came amid efforts to simplify the group's complex corporate structure, improve value discovery and provide greater financial and operational flexibility to each business.