The four companies that emerged from Anil Agarwal-led Vedanta's mega demerger, Vedanta Oil & Gas, Vedanta Power, Vedanta Aluminium Metal and Vedanta Iron & Steel, made their stock market debut on Monday on the BSE and NSE. All four stocks have been placed in the Trade-to-Trade (T2T) segment, where every transaction results in compulsory delivery.
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.
Brokerages believe the demerger could unlock significant value for shareholders by allowing investors to directly choose their preferred commodity exposure.
"Apart from simplifying the corporate structure, this will allow investors to invest in their preferred commodities. Furthermore, the company is on the verge of reaping the twin benefits of volume augmentation and cost optimisation across verticals. This will likely be supported by continuous deleveraging and consistent growth capex. This, along with rising commodity prices, could potentially drive upside revisions in our estimates," ICICI Securities said in a note.
While existing Vedanta shareholders have received shares in all four demerged entities, analysts have begun identifying their preferred bets for investors who missed the demerger opportunity.
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Which post-listing Vedanta demerger stock should you buy?
Sunny Agrawal, Head of Fundamental Research at SBI Securities, believes investors can consider buying Vedanta Aluminium Metal, citing robust aluminium capacity expansion and strong LME aluminium prices.
According to Agrawal, Vedanta Aluminium Metal commands a fair value of Rs 489 per share, making it the most attractive among the demerged entities. He values Vedanta Power at Rs 44 per share, Vedanta Oil & Gas at Rs 42 per share and Vedanta Iron & Steel at Rs 19 per share.
ICICI Securities echoed a similar view, calling aluminium the group's ‘crown jewel’. The brokerage is most bullish on the aluminium segment, as the ongoing war could lead to a higher-than-expected aluminium supply deficit. This, coupled with better coal integration, presents upside potential to estimates. "Furthermore, we expect debt to maintain a downward trajectory, despite projected annual group-level capex of $1.8-2.0 billion," the brokerage said.
Domestic brokerage ICICI Direct also singled out Vedanta Aluminium as the standout business among the demerged entities. It expects the company to list at a valuation of more than Rs 400 per share, supported by its significant contribution to group revenues and margins, favourable industry dynamics, elevated aluminium prices, tight global supply and ongoing capacity expansion-led volume growth.
Nuvama, meanwhile, expects Vedanta and Vedanta Aluminium to remain large-cap stocks, while Vedanta Power, Vedanta Oil & Gas and Vedanta Iron & Steel are likely to enter the market as small-cap companies. The brokerage highlighted that mutual fund flows are likely to be skewed towards the two large-cap entities, while the smaller demerged businesses may see relatively limited participation.
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What do Vedanta demerged companies do?
Vedanta Aluminium Metal - It is India's largest aluminium producer, according to the company. In FY25, it produced 2.42 million tonnes of aluminium, accounting for more than half of India's total aluminium output.
The company operates a 5 MTPA alumina refinery in Odisha's Kalahandi district and the world's largest aluminium plant at Jharsuguda, Odisha, with a capacity of 1.85 MTPA. It also operates Bharat Aluminium Company Limited (BALCO) in Chhattisgarh.
Vedanta Power - It has more than 4 GW of installed capacity across four strategic assets located in Punjab, Andhra Pradesh, Chhattisgarh and Odisha. It also has several long-term and medium-term Power Purchase Agreements (PPAs) with state utilities.
Vedanta Power is expected to command a market capitalisation of Rs 17,466 crore at the time of its market debut, according to Nuvama. Domestic brokerage Emkay estimates a value of around Rs 51.7 per share, while Kotak Institutional Equities pegs it at Rs 60 per share. Nuvama's valuation implies a value of around Rs 47 per share, while CLSA's estimate corresponds to roughly Rs 35 per share.
Vedanta Oil & Gas - The company claims it is India's leading private-sector upstream player and aims to scale production to 300,000-500,000 barrels per day through an investment of $5 billion.
Vedanta Iron & Steel - The company has operations spanning India and Africa and is focused on iron ore exploration, mining and processing. The company also produces high-quality steel, wire rods, TMT bars, pig iron, ductile iron (DI) pipes, ferro-silicon, cement and metallurgical coke.
Analysts believe the iron and steel business may attract relatively less investor interest, as larger and more focused players in the sector present a stronger investment case.
The shares of these Vedanta demerged entities will participate in a special pre-open session meant for newly listed companies before regular trading commences. These shares will be in the Trade-to-Trade segment for 10 trading days.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
