Ahead of the special session for the price discovery of the demerged Vedanta Limited, the metal and mining major’s CEO told investors in an earnings call that the four spun-off businesses could list in the Indian stock market by June.
According to a PTI report, Vedanta Resources CEO Deshnee Naidoo said that its India arm will file with stock exchanges next week for listing approval of its demerged entities.
“In the next week, we will be filing with the exchanges for listing approval. The shares of the resulting companies are expected to list and commence trading by mid-June,” she was quoted as saying by the news agency.
Vedanta, earlier this month, set May 1 as the effective and record date for the creation of five independent companies, allowing each company to chart out its own growth trajectory and attract investors. With Friday, May 1, being a stock market holiday, April 29 was the last day to purchase the shares to participate in the demerger process.
Vedanta is demerging into four entities. Anyone holding Vedanta shares will receive four additional shares of the resulting companies.
Vedanta CFO Ajay Goel said, “We are targeting listing and commencement of trading of these shares by the first quarter of FY’27.”
Vedanta to trade ex-demerger tomorrow
Vedanta will have a price discovery session from 9:15 to 9:45 am tomorrow, April 30, and normal trading will start from 10:00 AM at the ex-demerged price.
“The Special Pre-Open Session on April 30 is the moment Vedanta’s three-year-old demerger story finally meets the market’s price-discovery machinery,” said Harshal Dasani, Business Head at INVasset PMS.
According to analysts, the demerged price for Vedanta shares could be around ₹300 apiece. The residual Vedanta Ltd is likely to open in the ₹300–325 band, anchored largely by its 63.4% stake in Hindustan Zinc, copper, ferro chrome and the emerging displays venture, estimates Dasani.
As part of its demerger plan, Vedanta intends to list four separate entities: Vedanta Aluminium Metal Limited (VAML), Talwandi Sabo Power Ltd (TSPL), Malco Energy Ltd (MEL), and Vedanta Iron and Steel Limited (VISL).
According to the company’s exchange filing, the composite scheme of arrangement will grant Vedanta shareholders one equity share in each of these four businesses for every share they currently hold, maintaining a 1:1 ratio.
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