Vedanta Ltd stock experienced a significant recovery on Monday, jumping over 8.5% to reach ₹294.80 compared to the previous close of ₹271.60. According to latest reports, the stock opened higher by 2.3% at ₹278 and continued its upward momentum throughout the trading session. This recovery represents a substantial rebound from the dramatic decline witnessed on Thursday, when the stock had fallen to ₹278 from its pre-demerger level of around ₹775. The stock had previously experienced a dramatic decline following the demerger record date, falling 65.2% from its closing price of ₹773.25 on April 29 to a 52-week low of ₹268.70 on April 30. The latest surge comes despite ongoing challenges including a ₹233.11 crore demand for unauthorized water extraction from the Bheden river, with the Burla irrigation division issuing a one-month deadline for payment.
Vedanta is executing a 1:5 split into five separate entities with the record date fixed for May 1, 2026. As reported by Goodreturns, the demerged companies will be named Vedanta Aluminium Metal Ltd (VAML), Vedanta Power Ltd (VPL), Vedanta Oil & Gas Ltd (VOGL), Vedanta Iron and Steel Ltd (VISL), and the existing Vedanta Ltd entity. For every 1 stock held, eligible shareholders will receive 1 new share each in the four newly formed companies, while continuing to hold the same number of Vedanta Limited shares. The National Stock Exchange conducted a special pre-open session between 9:15 am and 9:45 am on Thursday to discover the valuation of the demerged entity, with the stock valued based on the group's residual business after aluminium, power, oil & gas, and steel operations. The demerger is expected to help investors better value the businesses of the conglomerate while leading to operational transparency, improved capital allocation, and better utilisation of funds.
Brokerage Nuvama values Vedanta at ₹936 per share for its consolidated business, with the ex-date demerged Vedanta valued at ₹336 per share. According to Goodreturns, ICICI Direct has revised its sum of the parts valuation for all resulting entities combined at ₹820 per share. The consensus recommendation from 14 analysts following the demerger record date is BUY, with an average target price of ₹863.86 for a 12-month period. The residual business is now mostly led by Hindustan Zinc, which will form the core of the restructured entity. While analysts highlight improved business focus and upside potential supported by strong Q4 earnings, some recommend waiting for price discovery as the market adjusts to the separated business units.
Despite the recent recovery, analysts remain divided on Vedanta's outlook, with some recommending waiting for price discovery while others see value driven by zinc business strength and improved corporate structure post-demerger. The stock's adjusted performance reflects the exclusion of four business units following the demerger, with the company now focusing on its core zinc operations. The ₹14,535-crore acquisition of bankrupt firm Jaiprakash Associates by the Adani group has been upheld by the National Company Law Appellate Tribunal, with the tribunal finding no merit in Vedanta's challenges. This development, combined with the ongoing demerger process, continues to influence market sentiment as investors navigate the transition to the new corporate structure.
