Vedanta Shares Crashed 7% Today: Large Block Deal Weighs On Stock

Vedanta shares fell more than 7% on Tuesday after a large block deal involving around 6.5 crore shares changed hands, triggering selling pressure in the stock days after the group's landmark demerger exercise.

The stock declined as much as 7.5% to ₹282.85 on the NSE from its previous close of ₹305.85.

The fall came after reports indicated that promoter entity Twin Star Holdings was likely to offload up to 6.5 crore shares through block trades. CNBC-TV18 had earlier reported that the transaction was expected to be executed at a floor price of ₹291 per share, implying a discount of about 4.9% to Monday's closing price. Based on the floor price, the deal size is estimated at nearly ₹1,892 crore.

Promoter Stake In Focus

Market participants had anticipated that the transaction would involve a reduction in promoter shareholding.

As of March 31, 2026, Twin Star Holdings owned a 40.02% stake in Vedanta, while the overall promoter group held 56.38% of the company.

Although the identities of the buyers and sellers were not immediately disclosed, the market widely expected Twin Star Holdings to be the seller.

The block deal comes at a time when investors are reassessing Vedanta's ownership structure and valuation following the group's recent corporate restructuring.

Deal Comes After Demerger

The transaction follows Vedanta's major demerger exercise, under which its aluminium, oil and gas, power, and iron and steel businesses were listed as separate entities earlier this month.

The demerger marked one of the largest corporate restructuring exercises undertaken by an Indian conglomerate and was aimed at unlocking value through sector-focused standalone businesses.

Despite Tuesday's sharp decline, Vedanta shares continue to trade above their ex-demerger closing price of ₹271.55 recorded on April 30, when the stock began trading without the value of the spun-off businesses.

Before the demerger adjustment, Vedanta had closed at ₹773.60 on April 29.

Investors Reassess Valuation

The stock has recovered considerably from the volatility seen around the demerger process as investors evaluated the value of the residual Vedanta business alongside the newly listed entities.

Earlier this month, the combined market capitalisation of Vedanta Ltd and its four demerged companies exceeded the group's pre-demerger valuation, indicating that investors assigned a higher aggregate value to the standalone businesses than to the previous conglomerate structure.

However, Tuesday's block deal and the prospect of promoter stake dilution weighed on sentiment, leading to a sharp correction in the stock.