Shares of Anil Agarwal-led Vedanta have garnered robust investor interest following its mega demerger, which saw four businesses spun off and listed earlier in the day. The listing marks the culmination of the conglomerate's restructuring exercise announced in April, under which each eligible shareholder received one share in each of the four companies for every share held in Vedanta.
The move, one of the largest corporate restructurings in India's metals and mining space, had May 1 as the record date for the demerger.
Vedanta Oil & Gas made its stock market debut at Rs 39 per share on the BSE, while Vedanta Iron & Steel was listed at Rs 22 per share. Vedanta Power debuted at Rs 41.80 on the NSE and Rs 41.30 on the BSE. Following its listing, the company commanded a market capitalisation of approximately Rs 16,149.90 crore.
Vedanta Aluminium Metal, the largest of the newly listed entities by valuation, debuted at Rs 527 on the BSE. The company started trading with a market capitalisation of about Rs 2.06 lakh crore.
Vedanta shares remain volatile in trade following the listing of its four demerged entities, as investors reassess the group's valuation after the completion of the restructuring exercise. With separate market prices now available for each business, market participants are evaluating whether the combined value of Vedanta and the newly listed companies is higher or lower than expectations ahead of the demerger.
There could also be continued portfolio reshuffling by institutional investors, funds and shareholders who received stakes in the spun-off entities. Such repositioning could keep trading volumes elevated and trigger sharp movements in Vedanta shares.
Here’s what charts are saying
Virat Jagad, Senior Technical Research Analyst at Bonanza, says technically, the stock has entered a consolidation phase after a strong rally and is currently trading near the key support zone of Rs 300-305. The stock remains above its 100- and 200-day moving averages, keeping the broader trend positive despite short-term weakness.
RSI has slipped below the 50 mark, indicating a temporary loss of momentum, but no major trend reversal is visible yet. Investors can adopt a buy-on-dips approach near Rs 300 with a stop loss below Rs 290. On the upside, Rs 320-325 remains the immediate hurdle, while a breakout could lead to targets of Rs 340-350 in the medium term.
Vedanta Demerger Live Updates: Which newly listed Vedanta business offers the best opportunity?
Ruchit Jain, Vice President of Technical Research at Motilal Oswal, says Vedanta has witnessed a pullback in the last few sessions as the broader metals space has seen some profit booking. The momentum readings indicate a phase of near-term consolidation, with support placed around Rs 290 and resistance in the Rs 327-335 zone. According to him, the stock could continue to trade within this range in the near term.
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 with the earlier diversified structure.
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.
Vedanta Q4 snapshot
The Anil Agarwal-led group reported a 92% year-on-year jump in consolidated net profit to Rs 6,698 crore for the January-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.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
