Vedanta’s share price dropped by nearly 65% as it demerged into five separate entities on April 30, 2026. This significant restructuring is not a sign of a market crash but rather a strategic adjustment in its business model.
The demerger ratio stands at 1:5, meaning eligible shareholders will receive one new share in each of the new companies for every existing share they hold. Before the split, Vedanta’s share price hovered around ₹773; post-demerger, it plummeted to about ₹290.
After the adjustment, Vedanta’s market capitalization fell to ₹1,08,141.78 crore. The company’s 52-week high was ₹794.90, and the new low is now ₹271.50—an interesting shift that reflects the complexities of business segmentation.
Analysts have pointed out that this move aims to unlock value by separating different business segments. As one analyst noted, “Vedanta didn’t actually crash 60%. What you saw was a price adjustment after the demerger.” This perspective highlights how investors might need to recalibrate their portfolios in light of these changes.
Among the newly formed companies, Vedanta Aluminium is viewed as particularly promising. The revised sum of the parts (SoTP) valuation for all resulting entities combined is estimated at Rs 820 per share, according to analysts at ICICI Direct.
Investors should keep an eye on when these new entities are expected to be listed—within 4 to 8 weeks from the record date, likely around June to July 2026. This timeline will be crucial for understanding how the market responds to this bold restructuring.
The unfolding narrative here invites questions about how investors will track the combined value of Vedanta Ltd and its newly formed companies after they hit the stock market. Will this separation lead to greater transparency and profitability?
