Vedanta shares climbed 1.56% to ₹754.10 on the NSE on Tuesday morning, recovering from a low of ₹728.70 as investors returned to the counter ahead of a critical corporate event. According to The Hindu BusinessLine, the stock had hit a 52-week high of ₹795 on April 21 following the announcement of its demerger record date but has since pulled back over 3% from that peak. The rebound comes a day before the April 30 special pre-open price-discovery session, when Vedanta will trade ex-demerger, with normal trading resuming at 10 AM.
Vedanta shares declined over 5% following the company's announcement of 1 May 2026 as the effective and record date for its demerger into five separate entities. As per Mint, the stock has faced selling pressure since the record date was declared on 20 April 2026, with investors engaging in classic post-event profit-booking. The demerger will split Vedanta's aluminium, merchant power, oil and gas, and iron ore verticals into separate listed entities, with shareholders receiving shares in a 1:1 ratio for each demerged entity.
According to The Hindu BusinessLine, the recent weakness ahead of the ex-date was driven by profit-booking after an 81% one-year rally, with traders also unwinding positions ahead of F&O contract expiry on April 29. At current levels, Vedanta trades at a P/E of 17.52 with a free-float market cap of ₹1.28 lakh crore. Delivery volume stands at a healthy 62.93% of traded quantity, suggesting conviction buying rather than purely speculative activity, with total traded value crossing ₹1,641 crore by mid-morning. April 29 is the last date to buy Vedanta shares and qualify for demerger benefits under T+1 settlement rules.
As reported by Mint, Mistry advised that investors should not panic-sell, as once the other four entities are listed, portfolios will adjust to normal. For those looking to buy ahead of the demerger, Shah believes buying would be ideal as long-term trend is positive, with fair value based on SOTP around ₹900. However, he cautioned that investing post-demerger carries slightly higher risk, as active funds may choose not to continue investing in certain businesses, though it offers potentially higher returns from medium-to-long-term perspective. Risks remain post-demerger including debt distribution across five entities, London-based promoter holding company's reliance on thinner dividend streams, and commodity price volatility.
