Outlook Business Desk
Metals and mining company Vedanta, has set May 1 as the record date to identify shareholders eligible for its planned demerger. The company has also finalised the share allocation ratio for its newly carved-out businesses, confirming entitlement for eligible investors under the restructuring plan.
Vedanta shares will trade ex-demerger on April 30, meaning investors buying on or after this date will not be eligible for restructuring benefits. April 29 will remain the cum-date for eligibility under the T+1 settlement cycle rule.
The company will conduct a special price discovery session on April 30 between 9:15 am and 9:45 am to factor in the demerger impact. Normal trading will resume from 10:00 am with adjusted ex-demerger pricing for investors.
April 29 will serve as the cum-date, meaning investors holding the stock will remain eligible for demerger benefits. Under India’s T+1 settlement cycle, buyers must purchase at least one trading day before the ex-date to qualify.
Meanwhile, Vedanta’s demerged entities are expected to list over a flexible timeline ranging from a few weeks to several months, depending on regulatory approvals. Brokerage firm Nuvama said the listings could be completed in around four to eight weeks.
Under the approved demerger plan, Vedanta shareholders will receive one share each in Vedanta Aluminium Metal Ltd, Talwandi Sabo Power Ltd, Malco Energy, and Vedanta Iron and Steel for every one share held in Vedanta.
Vedanta Chairman Anil Agarwal told the Financial Times that the restructuring could generate strong shareholder value. He added that the demerged companies will run independently, while the parent company will continue to hold around a 50% stake in each entity.