Vedanta Demerger: Key Dates, Share Ratios and What Investors Need to Know

Vedanta's board has fixed May 1, 2026 as the record date for its much-anticipated demerger, marking a significant milestone in the company's ongoing strategic reorganisation. Investors holding Vedanta shares as of this date will be eligible to receive shares in each of the newly carved-out entities.

Shares of the company are expected to remain in focus on Tuesday, April 21, following the announcement. The stock opened at ₹790.55 and was trading at ₹772.70 during the morning session.

The Demerger Structure

The Board of Directors has approved key steps to operationalise the previously announced composite scheme of arrangement. Under the 1:1 demerger scheme, shareholders will receive one share of each demerged company for every one Vedanta share held. Once completed, the restructuring will result in five Vedanta Group companies listed on Indian stock exchanges, including the existing Vedanta.

The demerger is aimed at simplifying Vedanta's corporate structure by creating sector-focused, independent businesses. It is expected to unlock value for global investors, including sovereign wealth funds, retail investors and strategic investors, by offering direct exposure to dedicated pure-play companies aligned with India's growth story. Individual units will also be better positioned to pursue independent strategic agendas and align with their respective customers, investment cycles and end markets.

Four New Entities to Be Listed

Following the demerger, four new companies will be listed separately on the stock exchanges:

• Vedanta Aluminium Metal Ltd.

• Talwandi Sabo Power Ltd., to be rebranded as Vedanta Power Ltd.

• Malco Energy Ltd., to be renamed Vedanta Oil & Gas Ltd.

• Vedanta Iron and Steel Ltd.

Share Allotment Ratios

Eligible shareholders of Vedanta Limited will receive shares in the resulting companies in the following ratios:

• Vedanta Aluminium Metal Limited (VAML):
  1 equity share (₹1 face value) for every 1 Vedanta share held

• Talwandi Sabo Power Limited (to be renamed Vedanta Power Limited):
  1 equity share (₹10 face value) for every 1 Vedanta share held

• Malco Energy Limited (to be renamed Vedanta Oil & Gas Limited):
  1 equity share (₹1 face value) for every 1 Vedanta share held

• Vedanta Iron and Steel Limited (VISL):
  1 equity share (₹1 face value) for every 1 Vedanta share held

Important Note on Eligibility

Given India's T+1 settlement cycle, shares purchased on May 1 will not be eligible for the demerger. Investors must hold shares in their demat account by April 30, 2026 to qualify.

Listing Timeline and Stock Performance

The listing of the new entities is expected within four to eight weeks from the record date, subject to regulatory and shareholder approvals, placing the probable listing window within two months of May 1, 2026. Once the process concludes, investors will be able to trade shares of all five Vedanta Group companies independently.

On the stock performance front, Vedanta shares ended 2.2% lower at ₹770 on Monday, though the stock has gained 20% over the past month and is up 28% on a year-to-date basis, reflecting sustained investor interest ahead of the demerger.