Vedanta Shares Rebound 7% After Demerger Adjustment, NCLAT Blow Adds Twist

Shares of Vedanta rebounded sharply in early trade on Monday, rising over 7% to ₹290, recovering most of the losses seen after last week's ex-demerger price adjustment.

The stock had corrected on Thursday following a special pre-open session that reset its price to ₹289.5 on an ex-demerger basis. It subsequently fell over 6% during the session, reflecting technical adjustments linked to the restructuring. Monday's recovery indicates stabilisation, with markets factoring in the new price discovery.

Vedanta shares are now trading close to their post-demerger levels, suggesting that investors are largely discounting any fundamental weakness in the underlying business.

Demerger Drives Price Reset

The decline last week followed the separation of four key verticals: aluminium, power, oil & gas and steel—into independent entities. Post restructuring, the adjusted share price reflects the residual business, largely anchored by Hindustan Zinc.

Under the demerger scheme, shareholders will receive one share in each of the four newly created companies for every share held in Vedanta. These entities are expected to be listed over the coming months, which could unlock value and drive further price discovery.

With initial volatility easing, investor focus is now shifting towards listing timelines and valuations of the demerged businesses.

The company has also indicated a shift in its dividend framework. Chief Financial Officer Ajay Goel said the new policy will be more "principle-based" rather than "prescriptive".

The change comes as Vedanta transitions into a multi-entity structure. While payouts are expected to remain strong, the revised approach suggests greater flexibility in timing and quantum of dividends, reducing predictability for income-focused investors.

NCLAT Rejects Vedanta's Plea

In a separate development, the National Company Law Appellate Tribunal (NCLAT) rejected Vedanta's plea challenging the Committee of Creditors' decision to award Jaypee Associates assets to Adani Enterprises.

The tribunal said there were no grounds to interfere with the decision, noting that the selection of Adani Group's bid could not be termed arbitrary or perverse.

Vedanta had argued that its ₹17,926 crore bid was higher by around ₹3,400 crore and would have maximised value under the insolvency process. However, the tribunal upheld the creditors' decision, dealing a setback to the company's acquisition plans.

The stock's recovery, despite regulatory and restructuring developments, signals that investors are increasingly focusing on the long-term value unlocking potential from the demerger.