Metals and mining giant Vedanta Ltd completed its much-awaited demerger process on Monday with the listing of its four newly formed entities on stock exchanges. After initial euphoria, shares of all four newly listed companies closed lower on their trading debut.
Shares of Vedanta Aluminium Metal listed at Rs 522 on the NSE and Rs 527 on the BSE, while Vedanta Power debuted at Rs 41.80 on the NSE and Rs 41.30 on the BSE.
Vedanta Oil & Gas opened at Rs 38 and Rs 39, while Vedanta Iron and Steel shares listed at Rs 20 and Rs 21 on the NSE and BSE, respectively.
Except for Vedanta Power, shares of the remaining three companies hit their respective lower circuits soon after listing, even as there was optimism in the broader equity market following the US-Iran peace deal and softening crude oil prices.
Vedanta Aluminium Metal and Vedanta Oil and Gas fell 5% each, while Vedanta Iron and Steel declined 5.39%. Vedanta Power closed around 1% lower in its maiden trading session. All four stocks are initially placed in the Trade-to-Trade (T2T) segment, meaning intraday trading is not permitted on them, and all transactions must result in the delivery of shares.
Marking one of the biggest corporate restructurings, billionaire Anil Agarwal-led Vedanta group underwent a lengthy demerger process. Under the 1:1 Vedanta demerger scheme, shareholders received one equity share of each demerged company for every one share held in Vedanta Ltd.
The listing of four demerged Vedanta entities has unlocked over Rs 60,000 crore in shareholder value, with the combined market capitalisation of all five listed Vedanta group companies surpassing the conglomerate’s pre-demerger valuation.
Based on the listing prices of the newly demerged entities on Monday, the combined market capitalisation of Vedanta Ltd and its four newly listed businesses stood at approximately Rs 3.65 lakh crore. In comparison, Vedanta Ltd’s m-cap prior to the demerger ex-date of April 29 was over Rs 3.02 lakh crore.
Meanwhile, Vedanta Chairman Anil Agarwal hinted at a possible overseas relisting of parent Vedanta Resources and laid out an ambitious expansion roadmap across businesses, saying each vertical has the potential to become a $100 billion opportunity over time as the group scales up operations in metals, mining, oil and gas, power and critical minerals.
Agarwal said relisting of Vedanta Resources, which was delisted from the London Stock Exchange, is not an immediate plan but may be completed in three years' time.