Four Vedanta entities are set to list on stock exchanges on Monday, June 15, following a major demerger. Vedanta Aluminium is anticipated to debut with a market capitalization of Rs 1.74 lakh crore, potentially surpassing its parent company. The demerged companies will initially trade in the Trade-to-Trade segment.
The four companies that spun out from Vedanta’s mega demerger are slated to debut on stock exchanges BSE and NSE on Monday (June 15), with analysts predicting Vedanta Aluminium will debut with a market cap of Rs 1.74 lakh crore, overtaking its parent company after the special pre-open session.
According to exchange notices, Vedanta Oil & Gas, Vedanta Power, Vedanta Aluminium Metal, and Vedanta Iron & Steel will make their highly anticipated market debut on Monday. They will initially be placed in the Trade-to-Trade (T2T) segment, where every transaction results in compulsory delivery.
This follows the Anil Agarwal-led conglomerate’s announcement in April that each eligible shareholder would receive one share in each of the four companies for every share held in Vedanta, marking one of the largest corporate restructurings in India’s metals and mining sector. Vedanta set May 1 as the record date for the demerger. While Vedanta shares have already adjusted to the restructuring, investors are eagerly awaiting the listing of the four companies that emerged from it.
Here are the anticipated prices for the four new stocks upon their listing on Monday, according to analysts.
Vedanta Aluminium Metal Share Price
Vedanta Aluminium Metal is likely to be the only large-cap stock among the group that will list after the mega demerger. According to a report by Nuvama, the company is expected to debut with a market capitalization exceeding Rs 1.74 lakh crore, higher than the Rs 1.14 lakh crore market cap assigned to the parent Vedanta.
Sunny Agrawal, Head of Fundamental Research at SBI Securities, estimates the fair value of Vedanta Aluminium Metal at Rs 489 per share. “Notably, among the demerged businesses, Vedanta Aluminium stands out as the most attractive entity, with an expected listing valuation of over Rs 400 per share. This is supported by its strong contribution to group revenues and margins, along with favorable industry dynamics such as tight global supply, elevated aluminium prices, and ongoing capacity expansions driving volume growth,” stated ICICI Direct in a report.
ICICI Securities remained the most optimistic regarding the aluminium segment, suggesting that the ongoing conflict could lead to a higher-than-expected aluminium supply deficit. They referred to the company as the new “crown jewel” of the mining-to-metals conglomerate, estimating the share price to be Rs 398 per share.
Vedanta Power Share Price
Vedanta Power is expected to have a market capitalization of Rs 17,466 crore at the time of its market debut, according to Nuvama’s report. Agrawal anticipates the stock will have a fair value of Rs 44 per share.
Emkay estimates a share price of around Rs 51.7 per share for Vedanta Power. Kotak Institutional Equities projects the stock at Rs 60 per share, while Nuvama’s valuation suggests a value of approximately Rs 47 per share. CLSA’s estimate aligns with roughly Rs 35 per share.
Vedanta Oil & Gas Share Price
Sunny Agrawal indicates that Vedanta Oil & Gas has a fair value of Rs 42 per share. Nuvama expects the company’s market cap to be Rs 15,824 crore.
Vedanta Oil & Gas claims to be India’s leading private sector upstream player, aiming to scale up to 300,000 to 500,000 barrels per day with an investment of $5 billion.
Vedanta Iron & Steel Share Price
Vedanta Iron & Steel is likely to debut on stock exchanges with a market cap of Rs 8,680 crore, according to Nuvama. Agrawal expects the stock to have a fair value of Rs 19 per share. The iron and steel business may attract less interest from investors as larger, more focused players present a stronger investment case, according to experts.
Vedanta Iron & Steel operates across India and Africa, focusing on iron ore exploration, mining, and processing. It also produces high-quality steel, wire rods, TMT bars, pig iron, Ductile Iron (DI) Pipes, Ferro-silicon, cement, and metallurgical coke.
Vedanta Share Price
Vedanta shares adjusted to the mega demerger on April 30, experiencing a significant drop of nearly 63%. The stock opened at Rs 289.50 per share on NSE following a special pre-open session.
Subsequently, Vedanta shares surged, climbing 24% in 20 days to reach a high of Rs 360 per share. The stock then fell 14% to close at Rs 309.65 per share on Friday, although it remains above its post-demerger adjustment level. The company’s market capitalization at the end of the previous week stood at just over Rs 1.21 lakh crore.
(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Source: Economic Times
