Vedanta to List Five Demerged Units by May: What to Expect on Share Prices, Revenue and Debt

Anil Agarwal-led mining giant Vedanta plans to complete the demerger of its five entities by April 1, with the newly formed units expected to be listed by the end of May, the company’s president and chief financial officer, Ajay Goel, told analysts on January 29. The move follows approval of the demerger plan by the National Company Law Tribunal in December.

“We remain committed to completing the demerger as earlier guided, targeting April 1 as the effective date, with the listing of the demerged entities in the same quarter, around mid to end of May. This structural transformation will unlock further value and improve capital efficiency across verticals,” Goel said during the third-quarter earnings call.

The move is expected to bring closure to a long-pending plan announced by Agarwal nearly two years ago, which had been delayed due to regulatory hurdles, including opposition from the Centre. Post demerger, Vedanta will have five independently listed businesses: Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power, Vedanta Iron and Steel, and Vedanta Ltd, which will continue to house subsidiary Hindustan Zinc. The parent company will also act as an incubator for new business opportunities.

How will Vedanta’s debt be spread?

The company’s management also outlined how it plans to distribute its total net debt of about $6.7 billion.

“Broadly, net debt in Vedanta, at about $6.7 billion, will get apportioned in the ratio of assets that each entity will carry post demerger, and each entity’s cash generation and debt-servicing ability,” Goel said in response to an analyst’s question.

He added that the lion’s share of the debt burden will be passed on to Vedanta Aluminium, with some debt allocated to Vedanta Power. The remaining debt will sit on the books of Vedanta Ltd. However, he did not disclose the exact distribution.

The oil and gas business is expected to be largely debt-free, he added. The company expects to finalise the balance sheets by the end of March.

At the group level, Vedanta plans to cut debt by $0.8–1.0 billion in FY26. According to the management, the ₹30 billion raised from the recent Hindustan Zinc offer for sale will be used entirely for debt reduction.

In the third quarter of FY26, Vedanta reported a strong operating performance, with EBITDA rising to ₹15,170 crore, marking a 30.6% quarter-on-quarter increase. The sharp rise was driven mainly by improved profitability in the aluminium and zinc businesses. Segment EBITDA from aluminium grew 27% QoQ, while zinc EBITDA rose 37% QoQ, supported by higher metal prices. Together, aluminium and zinc contributed 86% of the group’s consolidated EBITDA in Q3.

Average prices increased 8% for aluminium, 12% for zinc and 40% for silver compared with the previous quarter.

“We shift to a demerger-based SOTP (sum-of-the-parts) with segment-level debt attribution to derive fair value,” Emkay Global said in a note on Friday.

According to the brokerage, Vedanta Ltd is estimated to carry net debt of about ₹23,240 crore, with an equity value of roughly ₹1,19,920 crore, or ₹304 per share. Vedanta Aluminium is expected to have the highest net debt at around ₹34,510 crore, with an equity value of about ₹1,63,450 crore, or ₹415 per share. Vedanta Oil & Gas is projected to be debt-free, with an equity value of nearly ₹29,300 crore, or ₹74 per share. Vedanta Iron and Steel is estimated to have net debt of around ₹1,000 crore and an equity value of about ₹7,670 crore, or ₹20 per share. Vedanta Power is expected to carry net debt of roughly ₹8,660 crore, with an equity value of around ₹11,010 crore, or ₹28 per share.

Emkay Global analysts remains positive on Vedanta shares, upgrading its FY27 and FY28 EBITDA estimates by up to 3% and raising its SOTP-based target price by about 21% to ₹850 from ₹700.

However, shares of the company fell as much as 11% on Friday to ₹680.95 by 3.20 pm on the BSE. Reports citing market participants said the decline was linked to profit-booking, as the stock has been on an upward trajectory for some time. Year to date, the Vedanta scrip has gained over 12%.