Shares of Vedanta Iron & Steel debuted on the BSE at Rs 22 apiece on Monday following a special pre-open session, as the four companies spun off from Vedanta under its demerger plan made their much-awaited stock market debut on Dalal Street.
The company's shares opened at Rs 20 apiece on NSE. The company’s market capitalisation at the time of market debut stood at around Rs 7,821 crore.
Vedanta Iron & Steel shares were expected to command a fair value of Rs 19 per share, according to Sunny Agrawal, Head of Fundamental Research at SBI Securities. Nuvama, meanwhile, had expected the company to debut with a market cap of Rs 8,680 crore.
Also read: Which demerged Vedanta stock should you buy after their market debut?
About 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.
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.
Also read: Vedanta Aluminium lists at Rs 527 on BSE after demerger. Is it the group’s new crown jewel?
About Vedanta demerger
Vedanta in April had announced that each of its eligible shareholders will get one share in each of the four companies, namely Vedanta Aluminium, Vedanta Power, Vedanta Oil & Gas and Vedanta Iron & Steel, for every share held in Vedanta held on record date, which was May 1.
While Vedanta shares have already adjusted to the restructuring, investors were actively awaiting the listing of the four companies that spun out of it. The stocks will be initially placed in the Trade-to-Trade (T2T) segment, where every transaction results in compulsory delivery.
Also read: How the mega Vedanta demerger will impact payout for 21 lakh shareholders?
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times
