Vedanta Demerger: Why this stocks is showing up to 63% fall – Details inside!

Reason Behind the 62% Fall

The reason behind the decrease in the stock price is mostly because value has been stripped away from four core business divisions undergoing demergers. They comprise aluminum division, power division, oil & gas division, and steel division. Starting from April 30, the stock will be traded as "ex demerger" until the record date of May 1, which is a holiday owing to Maharashtra Day.

Any shareholder who has bought his stocks till April 29 is entitled to receive the demerger dividends, while anyone who buys his stocks after April 30 is not. The difference between the closing price of April 29 and the new price of ₹289.5 will basically be the value of the demerged assets.

Structure of the Demerger

The reorganization process entails a vertical division of Vedanta’s diverse business units into four distinct companies. For every share owned in Vedanta prior to the record date, shareholders will get one share in each of the four companies. The four companies created are Vedanta Aluminum Metal Limited, Talwandi Sabo Power Limited, Malco Energy Limited, and Vedanta Iron and Steel Limited.

After the demerger, Vedanta Ltd will remain a listed company, while the demerged firms are expected to list themselves within 1-2 months.

Market and Derivatives Impact

Contract periods for all live derivative contracts have expired on April 29. A fresh series of contracts has been brought back with new price bands and lot sizes from April 30, starting at 10 AM. Although Vedanta will be continuing its presence in the Nifty Next 50 index, the demerged companies will show up as dummy constituents.

Strategic Rationale Behind Demerger

This demerger is set to enhance the simplicity of the structure of Vedanta, as well as the unlocking of the values that can be gained through diversification. Through pure play entities, there is a desire to increase transparency in financial reporting and give room for independent assessment of each business within the corporation.

Vedanta Q4FY26 Financial Performance

While there was a drastic adjustment in the share price of Vedanta, its financial performance in the March 2026 quarter was very impressive. The net profit jumped by 80% year-over-year to ₹9,352 crore. Its revenue grew by 29% year-over-year to ₹51,524 crore. Meanwhile, the company’s EBITDA grew by 59% year-over-year to ₹18,44

Conclusion

The decline of 62% in Vedanta Ltd stocks is the consequence of a structural adjustment process, not an adverse market response to the company’s decision. Shareholders who held stocks prior to April 29 are eligible for stock entitlements in the four separate companies. The valuation perspective for all four new ventures together is quite promising, hovering around ₹820 per share.