Four Vedanta Group firms — Vedanta Aluminium, Vedanta Power, Vedanta Oil & Gas, and Vedanta Iron & Steel — made their much-awaited debut on the BSE and NSE after a special pre-open session today, marking the final leg of the conglomerate’s mega demerger.
Vedanta Aluminium shares are listed as the only large-cap on the list, debuting at Rs 527 apiece on the BSE with a market capitalisation of Rs 2.06 lakh crore, surpassing its parent Vedanta. Vedanta Power debuted at Rs 41.30 per share, while Vedanta Oil & Gas and Vedanta Iron & Steel were listed at Rs 39 and Rs 22 apiece, respectively.
The Anil Agarwal-led group had announced in April that each eligible shareholder would receive one share in each of the four companies for every Vedanta share held on the record date, in what is among India’s biggest corporate restructurings in the metals and mining sector.
Vedanta had fixed May 1 as the record date for the much-awaited demerger. While Vedanta shares have already adjusted for the restructuring, investors were awaiting the listing of the four spun-off entities.
4 Vedanta stocks undergo price discovery in special pre-open session
The special pre-open session ran from 9 am to 10 am today on the NSE and BSE, after which trading in these stocks commenced. According to exchange notices, shares of Vedanta Oil & Gas, Vedanta Power, Vedanta Aluminium, and Vedanta Iron & Steel will initially be placed in the Trade-to-Trade (T2T) segment, where all transactions are settled through compulsory delivery.
Also read: How will Vedanta demerger impact dividend payouts for shareholders?
Vedanta Aluminium Metal
Vedanta Aluminium Metal is the largest aluminium producer in India, according to the company. It produced more than half of India’s aluminium at 2.42 million tonnes in FY25, according to its website. It operates a 5 MTPA alumina refinery in Odisha's Kalahandi district, along with the world’s largest aluminium plant at Jharsuguda, Odisha with 1.85 MTPA capacity. It also operates Bharat Aluminium Company Limited (BALCO) in Chhattisgarh.
Vedanta Aluminium has a vision to double the existing production capacity to 60 lakh tonnes per annum, deep backward integration and structural cost advantages.
ICRA recently removed the long-term rating of Vedanta Aluminium Limited (VAML) from watch with developing implications, following greater clarity on the allocation of assets and liabilities under the ongoing demerger scheme of Vedanta Limited as well as the support framework across group entities. ICRA has also upgraded the rating and assigned a Stable outlook to the long-term rating.
Sunny Agrawal, Head of Fundamental Research at SBI Securities, said an investor can buy the shares of Vedanta Aluminium Metal on the back of robust capacity expansion of aluminium and strong LME Aluminium prices. He said that the fair value of Vedanta Aluminium Metal stands at Rs 489 apiece.
"Among the demerged businesses, Vedanta Aluminium stands out as the most attractive entity, with an expected listing valuation of Rs 400+ per share. This is supported by its strong contribution to group revenues and margins, along with favourable industry dynamics such as tight global supply, elevated aluminium prices, and ongoing capacity expansions driving volume growth," said ICICI Direct in a report.
Also read: At what price will each of the four new Vedanta companies list? Check cost of acquisition
Vedanta Power
Vedanta Power has more than 4 GW of installed capacity in four strategic assets in Punjab, Andhra Pradesh, Chhattisgarh and Odisha. It has several long-term and mid-term Power Purchase Agreements (PPAs) with state utilities.
Its portfolio comprises Vedanta Power Talwandi Sabo Thermal Plant in Punjab (1,980 MW), Vedanta Power Meenakshi Energy, in Andhra Pradesh (1,000 MW), Vedanta Power Sakti, Chhattisgarh (600 MW operational with another 600 MW under commissioning), and Vedanta Power Jharsuguda Thermal Plant, Odisha (600 MW).
According to Agarwal from SBI Securities, the fair value of Vedanta Power stands at Rs 44 per share. For Vedanta Power, Emkay estimated a share price of around Rs 51.7 per share. Kotak Institutional Equities saw the stock at Rs 60 per share, while Nuvama's valuation implies a value of around Rs 47 per share. CLSA's estimate corresponds to roughly Rs 35 per share.
Also read: ICRA removes Vedanta from watch with developing implications
Vedanta Oil & Gas
Vedanta Oil & Gas claims to be India’s leading private sector upstream player, as it aims to scale towards 300,000 to 500,000 barrels per day with an investment of $5 billion. “A little over a decade ago, Cairn was valued at $14.5 billion. “When we acquired Cairn, its market capitalization was half of the asset value. Today, Cairn has grown manifold, added many more reserves as well as a natural gas portfolio,” the company had said in a press release earlier this year.
Vedanta in May said that its average gross operated production for the full year stands at 87.2 kboepd. According to Sunny Agrawal, Head of Fundamental Research at SBI Securities, Vedanta Oil & Gas commands a fair value of Rs 42 per share.
Also read: Vedanta share price adjusts 63% as it trades ex-demerger. What's next for 21 lakh shareholders?
Vedanta Iron & Steel
Vedanta Iron & Steel has operations spanning India and Africa, and is focused on iron ore exploration, mining and processing. It also produces high-quality steel, wire rods, TMT bars, pig iron, ductile iron (DI) pipes, ferro-silicon, cement and metallurgical coke.
According to Sunny Agrawal, Vedanta Iron & Steel commands a fair value of Rs 19 per share. The iron and steel business is likely to see little favour with investors as larger and more focused players make for a stronger investment case, according to experts.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
