Four new Vedanta stocks debut on Dalal Street after demerger
What's the story
Shares of four Vedanta Group companies—Vedanta Aluminium, Vedanta Power, Vedanta Oil & Gas, and Vedanta Iron & Steel—made their debut on the Indian stock market today. The listings come after a special pre-open session and mark the final stage of one of India's most prominent metal and mining company's demerger. The National Company Law Tribunal had approved the demerger in December last year.
Share distribution
Demerged companies see positive opening
Under the 1:1 demerger scheme, shareholders will get one share each of the demerged companies for every one share they hold in Vedanta Ltd. On their debut, shares of Vedanta Aluminium were listed at ₹522 on NSE and ₹527 on BSE. Meanwhile, Vedanta Power opened at ₹41.8 (NSE) and ₹41.3 (BSE); Vedanta Oil & Gas debuted at ₹38 (NSE) and ₹39 (BSE); while Vedanta Iron And Steel opened at ₹20 (NSE) and ₹21 (BSE).
Market valuation
Implied value of 5 entities at ₹933 per share
Based on the debut prices and Vedanta Ltd's market value, the combined implied value of the five entities was about ₹933 per Vedanta share. This is 20.6% higher than Vedanta's pre-demerger closing price of ₹773.6 on April 29. The aluminum business contributed significantly to this valuation, with its listing price exceeding market expectations of ₹420-450 per share due to its scale, low-cost operations, and growth visibility.