Vedanta's demerger has created significant value for shareholders, with the company's shares now holding ₹902 per share against its pre-record price of ₹773.25 on April 29. According to The Economic Times, this represents a 20% increase in total value for Vedanta shareholders. The company also paid substantial dividends with yields above 8% of the total value, making it one of the most successful demerger stories in recent market history. However, while the combined value of the four newly demerged businesses and the residual entity showed gains, individual shares of Vedanta Aluminium Metal, Vedanta Oil and Gas, Vedanta Power and Vedanta Iron and Steel ended 1-5% lower on their stock exchange debut. The demerger, which took place nearly three years after it was first announced, aimed to simplify the group's structure and unlock value for each pure-play business.
For investors, one of the biggest questions following the Vedanta demerger is how the cost of acquisition (COA) affects long-term capital gains (LTCG) tax calculations. According to tax expert Balwant Jain, "Capital gains on the sale of shares are calculated based on the holding period and the date of acquisition of shares. If someone receives shares as part of a merger, or demerger, the holding period is counted from the date of purchase of shares." This means that if an investor sells shares after holding them for more than one year, the gains will qualify as long-term capital gains, while short-term capital gains apply if the holding period is less than one year. The cost allocation follows specific percentages: Vedanta Ltd (52.34%), Vedanta Aluminium Metal Ltd (7.15%), Talwandi Sabo Power Ltd (12.23%), Malco Energy Ltd (21.49%), and Vedanta Iron and Steel Ltd (6.79%).
The four demerged companies made their stock market debut on June 15, 2026, following the company's restructuring. As per The Economic Times, shares of Vedanta Aluminium Metal began trading at ₹527 on BSE and ₹522 on NSE, while Vedanta Power listed at ₹41.30 on BSE and ₹41.80 on NSE. Vedanta Oil and Gas started trading at ₹39 on BSE and ₹38 on NSE, and Vedanta Iron and Steel shares listed at ₹22.25 on BSE and ₹20 on NSE. Under the 1:1 ratio, shareholders received one share in each demerged entity for every Vedanta share held, with the approved demerger scheme sanctioned by the National Company Law Tribunal in December 2025.
The tax calculation for demerger gains follows standard LTCG formula: LTCG = Sale price - (cost of acquisition + expenses on transfer). Using Vedanta Aluminium Metal as an example, if an investor received 500 shares after the demerger and sold them at listing price of ₹527 per share, the calculation would be: Sale value = ₹2,63,500, Cost of acquisition = ₹17,875, LTCG = ₹2,45,625. After deducting the annual exemption of ₹1,25,000, the taxable LTCG becomes ₹1,20,625, resulting in tax liability of approximately ₹15,078 at the 12.5% LTCG tax rate. The taxable gain depends heavily on how the original cost is allocated across the new companies, with the split cost used when selling any of the demerged entities.
