Vedanta's Five-Way Split Unlocks ₹63,500 Cr in Shareholder Value in Two Months

Anil Agarwal-led Vedanta Limited's corporate restructuring reached a key milestone as four newly demerged units made their stock market debut, unlocking ₹63,500 crore in shareholder value and delivering a 22.5% return in less than two months.

Before the April 29 ex-date, Vedanta's market capitalisation stood at ₹3,02,371 crore on a share price of ₹773.25. Following the demerger and the listing of the new entities, the combined market value of the five separate companies rose to ₹3,65,830 crore.

On Monday, which was the debut day, Vedanta Aluminium Metal listed at ₹527, Vedanta Power at ₹41.30, Vedanta Iron & Steel at ₹22, and Vedanta Oil & Gas at ₹39. Together, these four stocks added up to ₹629.30.

By market value, Vedanta Aluminium Metal emerged as the largest entity at ₹2,06,000 crore. The residual Vedanta Limited was valued at ₹1,21,000 crore. Vedanta Power stood at ₹16,149.90 crore, Vedanta Oil & Gas at ₹14,859.47 crore, and Vedanta Iron & Steel at ₹7,821 crore.

Following the listing of the demerged entities, Vedanta shares surrendered part of their earlier gains and touched an intraday low of ₹304.70 on the BSE.

However, the stock continued to trade above its ex-demerger adjusted price of ₹291. On Friday, Vedanta shares had closed 1.46% higher at ₹309.50.

Analysts See Further Upside

According to Khandalwala Securities, the demerger separates businesses with different operating profiles, capital needs, growth paths and investor bases, giving investors direct exposure to leading franchises in aluminium, zinc and silver, oil and gas, power, and iron and steel.

Khandalwala Securities' Sum-of-the-Parts valuation had earlier pegged the aggregate equity value at around ₹2,004 per share, compared with the pre-demerger price of ₹775 per share, implying a potential upside of 159%. The brokerage said the conglomerate structure had led to a holding-company discount, and that the demerger could help unlock intrinsic value through better capital allocation and improved strategic flexibility.

Vedanta's financial performance ahead of the listing was also strong. The company reported consolidated revenue of ₹528 billion for the fourth quarter of FY26, up 31% year-on-year (YoY), driven by higher London Metal Exchange prices, better volumes and forex gains. EBITDA for the quarter stood at ₹184 billion, up 61% YoY, with margins improving to 34.9% from 28.3% a year earlier.

For the full year FY26, revenue rose 16% to ₹1,772 billion, while EBITDA grew 32% to ₹560 billion. Net debt stood at ₹532 billion as of March 2026, translating to a net debt to EBITDA ratio of 0.95 times.

Fitch Ratings upgraded Vedanta Resources Limited's long-term foreign currency issuer default rating to 'BB' from 'BB-', with a stable prospect. The agency cited expectations of higher commodity prices, healthy volumes and lower debt costs improving the company's financial profile. Fitch projects Vedanta Resources' consolidated EBITDA to average around $8 billion over FY27 and FY28, up from an estimated $6.8 billion in FY26.

However, Fitch flagged governance and group structure risks, noting that two of the company's three-member board are from the same family, which could limit independent oversight.