Vedanta's Special Trading Session Marks Major Demerger Adjustment
Vedanta to have special trading session for demerger today. What to expect
The Economic Times
Image: The Economic Times
Vedanta's shares will begin trading today after a significant corporate restructuring that excludes the value of its four demerged entities. The special pre-open session will adjust share prices, with estimates suggesting a range of ₹300-325 per share. This demerger is one of the largest in India's metals and mining sector.
- 01Vedanta shares will adjust to exclude four demerged entities during a special trading session.
- 02Estimated trading price post-demerger is ₹300-325 per share.
- 03The demerger is one of India's largest corporate restructurings in the metals and mining sector.
- 04Vedanta's market capitalization is expected to decrease to approximately ₹1.14 lakh crore.
- 05The demerger plan received approval from the National Company Law Tribunal in December 2022.
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Today, Vedanta Limited will undergo a special pre-open trading session to adjust its share price following the demerger of four entities, which include Vedanta Aluminium, Talwandi Sabo Power, Malco Energy, and Vedanta Iron and Steel. The session, running from 9:15 am to 9:45 am IST, is expected to show shares trading between ₹300-325 after the adjustment. Currently, Vedanta shares closed at ₹773.60 on the National Stock Exchange (NSE). Analysts anticipate that the fair value of the remaining base metal business will be between ₹250-290 per share. The adjustments are part of a significant restructuring in India's metals and mining sector, which was approved by the National Company Law Tribunal in December 2022. Following the demerger, Vedanta's market capitalization is projected to be around ₹1.14 lakh crore, down from over ₹3 lakh crore prior to the session. The new entities will be listed in the coming weeks, although specific dates have not yet been announced. This restructuring is seen as a long-term value-unlocking event for investors.
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The demerger is expected to create clearer valuations for Vedanta's various business segments, potentially benefiting long-term investors by unlocking value.
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