The Vedanta group has successfully completed its landmark demerger process, with four newly carved out entities - Vedanta Aluminium Metal, Vedanta Power, Vedanta Oil & Gas, and Vedanta Iron & Steel - listed on Indian stock exchanges today, June 15, 2026. Under the 1:5 Vedanta demerger scheme, shareholders received one equity share of each demerged company for every five shares held in the currently listed Vedanta Ltd. The listing date was fixed as June 15 Monday, with shares listed on both BSE and NSE after a special pre-open session from 9 AM to 10 AM. The Vedanta demerger record date was April 30, 2026, with the market remaining closed on Maharashtra Day, causing the adjustment to occur on April 30. As part of the demerger, Talwandi Sabo Power was renamed to Vedanta Power and Malco Energy became Vedanta Oil & Gas, resulting in significant business restructuring within the group.
Shares of Vedanta Aluminium Metal debuted at ₹527 per share on BSE but hit the 5% lower circuit during trading, declining as much as 5% to ₹500.65 after opening at ₹527.00. Vedanta Power touched the 5% upper circuit after listing at ₹41.80, gaining 5% to an intraday high of ₹43.35 on BSE. Vedanta Oil & Gas and Vedanta Iron & Steel also hit 5% lower circuit after listing at ₹38 and ₹20 respectively. The combined implied value of the five Vedanta entities stands at about ₹943.5 per original Vedanta share, representing an 18% premium over Vedanta's pre-demerger closing price of ₹773.25 on April 29. The listing has unlocked over ₹60,000 crore in shareholder value, with the combined market capitalisation of all five listed Vedanta group companies significantly surpassing the conglomerate's pre-demerger valuation.
The recent interim peace deal announced between the US and Iran has resulted in global markets repricing the war premium for aluminium. As reported by CNBC TV18, global aluminium prices are down nearly 10% from their recent peak, with prices hitting their highest level in four years at the end of May 2026. Despite this fall, analysts are factoring in the average price of aluminium to be around $3,200 - $3,300 per tonne over the next two years. Additionally, global markets are expected to remain in deficit for the next two years as well. Vedanta Aluminium Metal is India's largest aluminium producer and the third-largest globally outside China, anchored by the world's largest aluminium smelter at Jharsuguda, Odisha. The company plans to double capacity to 60 lakh tonnes per annum over the next three years with a clear ambition to become the world's largest and lowest-cost, fully integrated aluminium producer.
The gulf countries, along with Iran, have a smelting capacity of around 7 MTPA. According to CNBC TV18, Emirates Global Aluminium said on March 28 that it had sustained significant damage at its site at the Khalifa Port Industrial Zone in Abu Dhabi, following Iranian attacks. Aluminium Bahrain (Alba) had also said that it is assessing the extent of damage to its facility and will reduce the production of Value Added Products, which are used in an array of industries, including aerospace and defence. A resumption of these damaged facilities could take another nine months.
Additionally, China's aluminium production capacity is capped at 45 MTPA, and is already functioning at utilization levels of 97%. As reported by CNBC TV18, thematic drivers like AI, data centers, and energy transition could continue to keep demand robust, as aluminium is a key component for all these sectors. These factors are expected to support aluminium prices going ahead despite the current correction. Vedanta Aluminium Metal enjoys unique competitive advantages through security of nearly 4 billion tonnes of iron ore resources in Goa, Odisha and Karnataka and approximately 800 kilo tonne per annum (KTPA) of metallurgical coke, with access to gas pipeline infrastructure available at its doorstep.
