Vedanta shares surged over 3% to hit a fresh all-time high of ₹794.90 on Tuesday following the company's announcement of May 1, 2026 as the record date for its historic demerger. The stock's morning spike pushed Vedanta's market capitalization past the prestigious ₹3.06 lakh crore mark, effectively doubling its value from a 52-week low of ₹398.85 hit in May last year. This rally reflects investor optimism over the value unlocking potential as the conglomerate splits into five pure-play listed entities. The company has effectively doubled its value from the 52-week low, highlighting the massive re-rating the market has already factored in for Anil Agarwal's empire.
Vedanta's board has approved May 1, 2026 as the record date for the demerger, according to reports from CNBC TV18 and Outlook Business. This means the last day to buy Vedanta stock to be eligible for the demerged entities is April 30, 2026. The demerger will create separate listed entities for aluminium, power, oil and gas, and iron and steel businesses, with five companies expected to be listed within four to eight weeks depending on approval timelines. Since May 1 is a market holiday (Maharashtra Day), the effective record date for settlement is critical, with April 29, 2026 likely being the last day for investors to buy the stock to ensure it reflects in their demat accounts by the cut-off. The stock is expected to trade 'ex-demerger' starting April 30.
As reported by CNBC TV18 and Outlook Business, Vedanta had over 20.5 lakh retail shareholders as of the quarter ended March 2026, defined as those with authorized share capital of up to ₹2 lakh. Under the 1:1 demerger scheme, each shareholder holding one share of Vedanta Ltd. on the record date will receive one share of each of the demerged entities. The demerger aims to simplify Vedanta's corporate structure and provide investors with the flexibility to invest in their preferred vertical. According to Outlook Business, eligible shareholders will receive shares in the following ratios: Vedanta Aluminium Metal Limited (VAML): 1 equity share (₹1 face value) for every 1 Vedanta share held, Talwandi Sabo Power Limited (to be renamed Vedanta Power Limited): 1 equity share (₹10 face value) for every 1 Vedanta share held, Malco Energy Limited (to be renamed Vedanta Oil & Gas Limited): 1 equity share (₹1 face value) for every 1 Vedanta share held, and Vedanta Iron and Steel Limited (VISL): 1 equity share (₹1 face value) for every 1 Vedanta share held.
According to CNBC TV18 and Outlook Business, the demerger provides management flexibility to unlock value for investors through strategic asset liquidation or bringing in strategic investors. The company is removing the 'conglomerate discount' by splitting the diversified giant into pure-play verticals, allowing each business to be valued independently at higher multiples. The restructuring allows Vedanta to focus on its core strengths while providing investors with specialized exposure to different business verticals. The demerger is aimed at simplifying Vedanta's corporate structure by creating sector-focused, independent businesses, expected to unlock value for global investors, including sovereign wealth funds, retail investors and strategic investors, by offering direct exposure to dedicated pure-play companies aligned with India's growth story.
As reported by CNBC TV18, Vedanta operates India's largest aluminium capacity of more than 2.5 MT and is headed towards 3 MT. The company has focused on backward integration, with alumina capacity moving to 5 MT while captive coal is expected to ramp up drastically. The conglomerate's aluminium business costs of production have declined by 37% over the last 14 quarters and are expected to decline further towards $1,550 - $1,600 per tonne. Management believes this will help the aluminium vertical EBITDA double to $4 billion from $2 billion in financial year 2025.
