Vedanta shares jumped up to 5% intraday on May 4, 2026, with shares trading at ₹305.20, up 2.28% at the time of reporting. According to reports from The Economic Times, the surge came as the company provided updates on its long-awaited demerger progress. On April 30, 2026, Vedanta conducted a special trading session for price discovery ahead of its proposed demerger into five separately listed entities.
The credit of shares for Vedanta's demerger is now underway, with several shareholders reporting that shares of newly carved-out entities such as Malco Energy Ltd, Vedanta Iron and Steel Ltd, and Talwandi Sabo Power Ltd have started reflecting in their demat accounts. As reported by The Economic Times, under the demerger scheme, shareholders of Vedanta Ltd are entitled to receive one share each of the four demerged companies for every one Vedanta share held on the record date. The restructuring will eventually result in investors holding shares across five separate entities, including the existing Vedanta Ltd.
The demerger will create five independently listed pure-play entities with distinct business focus areas. According to reports from The Economic Times, the structure includes Vedanta Aluminium (Vedanta Aluminium Metal Limited) housing the group's aluminium and alumina operations, Vedanta Oil & Gas (Malco Energy / Cairn) focusing on upstream oil and gas exploration, Vedanta Power (Talwandi Sabo Power) managing coal-based thermal power generation, Vedanta Steel & Iron (Vedanta Iron and Steel Limited) covering ferrous materials and steel businesses, and Vedanta Limited (Residual Entity) continuing base metals operations including majority stake in Hindustan Zinc. During an investor call on Q4 financial results, Vedanta Resources CEO Deshnee Naidoo stated that shares of demerged units are expected to list and commence trading by mid-June 2026.
The demerger aims to simplify Vedanta's corporate structure with sector-focused independent businesses and provide opportunities to global investors, including sovereign wealth funds, retail investors, and strategic investors. As reported by The Economic Times, the restructuring will allow shareholders to receive equity in each new entity, enhancing individual business valuations. Vedanta's founder and chairman Anil Agarwal stated that the move is designed to create "globally competitive" businesses with clearer strategic focus and scalability, positioning the company for greater financial flexibility with improved net debt-to-EBITDA ratio of 0.95x.
According to reports from The Economic Times, Vedanta delivered its highest-ever profit after tax of ₹25,096 crore on revenue of ₹1,74,075 crore in FY26, driven by operational gains across businesses. The company achieved a total shareholder return of about 50%, outperforming sector benchmarks, while paying a dividend of ₹34 per share. Agarwal emphasized that the demerger marks a structural shift aimed at creating independent, sector-focused businesses with sharper strategic clarity and distinct growth pathways for the next phase of growth and value creation.
