Vedanta shares surged to a 52-week high of ₹795 in early trade on Tuesday, April 21, following the company's announcement of May 1, 2026 as both the effective date and record date for its business demerger into four independent companies. According to The Hindu BusinessLine, the stock was trading at ₹778.50 as of 9.46 am, up 0.97% or ₹7.50 from Monday's close of ₹771. The stock opened sharply at ₹791.70 before pulling back slightly, with traded volume already at 109.55 lakh shares and turnover crossing ₹860 crore. The total market capitalisation stood at approximately ₹3.03 lakh crore, reflecting strong investor confidence in the restructuring plan.
Under the restructuring plan, Vedanta will demerge its operations into four newly independent companies, including Vedanta Aluminium Metal Limited (VAML), Talwandi Sabo Power Limited (TSPL), Malco Energy Limited (MEL), and Vedanta Iron and Steel Limited (VISL). As reported by The Hindu BusinessLine, the demerger carves out Vedanta's aluminium, merchant power, oil and gas, and iron ore businesses into separate entities. The residual Vedanta Limited will retain the base metals business, including its significant stake in Hindustan Zinc. As part of the reorganisation, Vedanta also approved the transfer of its stake in Bharat Aluminium Company (BALCO) to VAML, with BALCO reporting a turnover of ₹15,909 crore for FY2025, accounting for roughly 10% of Vedanta's consolidated revenue.
According to the exchange filing reported by The Hindu BusinessLine, the Board of Directors approved the scheme effective from May 1, 2026, with the record date fixed after consultation with VAML, TSPL, MEL, and VISL. The board meeting was held on April 20, 2026, as part of the ongoing reorganisation process. The announcement confirmed that every Vedanta shareholder on the record date will receive one share each in the four newly listed companies for each share held in the parent company.
The stock has been a strong outperformer, returning nearly 90% over the past year against the Nifty Next 50's 8.33% gain, as reported by The Hindu BusinessLine. Year-to-date returns stand at 29.59%. The sell-side holds a marginal edge in today's order book, with 52% sell orders versus 48% buy orders. The positive market response reflects investor confidence in the restructuring plan, with the stock continuing to show strength alongside other market gainers.
The demerger plan received approval from the National Company Law Tribunal in December 2025, as reported by LiveMint. The proposal had earlier outlined plans to restructure the business into a pure-play model, with the restructuring receiving approval from over 99.5% of shareholders and creditors. This high approval rate indicates strong stakeholder support for the strategic reorganisation initiative.
