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News for India > Business > Vedanta share price falls over 3%. Should you buy the stock ahead of the demerger record date? | Stock Market News
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Vedanta share price falls over 3%. Should you buy the stock ahead of the demerger record date? | Stock Market News

Last updated: April 23, 2026 11:23 am
4 hours ago
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Vedanta share price fell over 3% on Thursday, extending its decline for the fourth consecutive trading session. Vedanta shares dropped as much as 3.17% to ₹733.05 apiece on the BSE.

The shares of the metals and mining major hit a 52-week high of ₹794.90 apiece on 21 April 2026, after the announcement of its demerger record date. The stock, however, succumbed to selling pressure since then, and is now more than 7% lower from its 52-week peak.

The Anil Agarwal-led conglomerate recently announced its demerger into five separate publicly listed companies – Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power, Vedanta Iron & Steel, and Vedanta Limited.

Vedanta shareholders will receive equity shares in four demerged businesses in a 1:1 ratio.

Vedanta demerger record date for determining the eligible shareholders to receive shares in the newly carved-out businesses is May 1, 2026. The company’s board of directors have also fixed May 1 as the demerger effective date.

Also Read | Vedanta Demerger Explained: Listing timeline, price discovery to passive flows

Since it is a stock market holiday on May 1 on account of ‘Maharashtra Day’, Vedanta shares will start trading ex-date for demerger from April 30, Thursday. Thus, investors must buy Vedanta shares at least 1 trading day before the ex-date (April 30) to be eligible for the demerger benefits.

For the purpose of price discovery, Vedanta Ltd will conduct a special pre-open session (SPOS) on April 30 as per the regulations. The special session will be held from 9:15 to 9:45 AM, and normal trading in Vedanta shares will start from 10:00 AM, reflecting ex-demerger pricing.

The price of all four demerged entities will be calculated based on the difference between the closing prices of Vedanta Ltd on April 29 and opening price of Vedanta Ltd discovered during the special pre-open session on April 30.

Thus, to be eligible for Vedanta demerger benefit, investors must buy the stock on or before April 29.

Should you buy Vedanta stock ahead of the demerger record date?

Vedanta’s 1-to-5 demerger is a watershed moment for value unlocking, dismantling the ‘conglomerate discount’ that historically weighed on its valuation, according to Avinash Gorakshakar, market expert and private wealth management consultant.

“By providing pure-play access to high-margin verticals like Aluminium and Zinc, the restructuring allows specialized capital to flow more efficiently. However, the record date on May 1 is not just a tactical entry; it’s a strategic bet on debt distribution. While the sum-of-the-parts valuation suggests significant upside, investors must weigh lucrative yields against the individual balance sheets’ ability to navigate commodity volatility,” said Gorakshakar.

Also Read | Vedanta demerger record date falls on a market holiday — Check last date to buy

Post-demerger, he believes, operational transparency will be the ultimate arbiter of shareholder wealth.

Gorakshakar pegs the fair value (SOTP) of the combined entities at ₹850 – ₹900 per share, implying an upside potential of around 19% from Wednesday’s closing price.

“I feel, the real ‘value’ isn’t just the split, it is the re-rating. Currently, the market applies a 20-30% discount because these businesses are bundled. Post-listing, Vedanta Aluminium Metal (VAML) could trade at par with Hindalco Industries, and the Oil & Gas unit could trade closer to ONGC, effectively ‘erasing’ that discount,” Gorakshakar said.

Sunny Agrawal – Head of Fundamental Research at SBI Securities believes the fair value of Vedanta to be ₹880 – ₹900 over a time horizon of 12-18 months.

“Out of the total fair value, ~ 54% and ~33% is attributed to the Vedanta Aluminium Metal Ltd and Vedanta Ltd business – which is currently listed (Zinc and Base Metals after demerger),” said Agarwal.

According to him, investors can look to approach Vedanta shares at current market price, implying the Fair Value to be ₹880 – ₹900 before the demerger record date.

At 11:20 AM, Vedanta share price was trading 1.79% lower at ₹743.50 apiece on the BSE.

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Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.



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