Vedanta demerger: When will the four new stocks list on NSE, BSE? Here's what investors can expect

Mining major Vedanta has completed its much-awaited demerger, with its current share price now reflecting the value excluding its four newly demerged entities. Investors are now awaiting the separate listings of these companies on the BSE and NSE.

In April, Vedanta announced that every eligible shareholder would receive one share each of Vedanta Aluminium Metal (VAML), Talwandi Sabo Power (to be renamed Vedanta Power), Malco Energy (to be renamed Vedanta Oil and Gas) and Vedanta Iron and Steel for every share held in the parent company—marking one of the biggest corporate restructurings in India’s metals and mining sector.

Vedanta shares had set May 1 as the record date for the much-awaited demerger. Since it was a market holiday on account of Maharashtra Day, the shares of the company adjusted to the demerger on April 30, appearing to have crashed more than 63% in one single day.


Eligible shareholders set to receive shares of the four newly demerged companies can continue trading Vedanta stock. However, the value attributable to these new entities is currently in price-discovery limbo—from the record date until their listings—since investors cannot trade them yet, even as Vedanta’s share price has already adjusted lower post-demerger. The listing dates for the four new companies on the BSE and NSE are still awaited.

What Vedanta CEO said about when the four companies will be listed

During an investor call following the quarterly earnings announcement last week, Vedanta Resources CEO Deshnee Naidoo said that the company will file with stock exchanges next week for listing approval of its demerged entities, with shares expected to list and commence trading by mid-June.

"In the next week, we will be filing with the exchanges for listing approval. The shares of the resulting companies are expected to list and commence trading by mid-June," she said.

What recent large demergers indicate

Nuvama Institutional Equities in a recent report said that while the exact dates for four listings are unknown so far, the recent large demergers like Tata Motors CV, Siemens Energy, ITC Hotels, Jio Financial Services, Piramal Pharma and NMDC Steel can indicate that listing timelines can range from 3 weeks to several months, depending on regulatory and operational factors.

Nuvama set target prices for the soon-to-be-listed demerged entities. “We value Vedanta (zinc and copper) at Rs 336/share, aluminium at Rs 477/share, oil & gas at Rs 47/share, steel & iron ore at Rs 30/share and power at Rs 47/share,” it said.

Vedanta share price

While investors await the four new listings, the share price of the now-demerged Vedanta continues to rise. The stock has now gained nearly 6% since adjusting to the demerger to hit an intraday high of Rs 305.90 apiece on NSE on Tuesday. Nuvama has set a target price of Rs 336 apiece for the stock, implying an upside potential of more than 14% from the previous closing price of Rs 294.65 apiece on NSE.

Also read: M&M Q4 Results: PAT soars 53% YoY to Rs 3,737 cr; Rs 33/share dividend declared

Sunny Agrawal, Head of Fundamental Research at SBI Securities, recommended investors to buy shares of Vedanta post demerger, as the zinc business carries robust earnings potential underpinned by its industry-leading cost of production and increasing contribution of the silver segment. “We expect the fair value of Vedanta in the range of Rs 320 - Rs 330 in the medium to long term," he said.

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