Vedanta Demerger Complete as Four New Spin Offs List on Bourses

Mumbai:  Marking the final leg of one of India’s largest corporate restructurings, billionaire Anil Agarwal-led mining conglomerate Vedanta Limited successfully listed four of its spun-out businesses on the domestic stock exchanges on Monday.

Headlining the massive debut, the group’s new crown jewel, Vedanta Aluminium Metal Limited, listed at a staggering ₹527 apiece on the Bombay Stock Exchange (BSE), beating initial street expectations of around ₹400 to ₹480.  On the National Stock Exchange (NSE), Vedanta Aluminium discovered its price at ₹522 per share, capturing an initial market capitalization of ₹2.06 lakh crore, which briefly surpassed the total valuation of its parent entity.

Despite the stellar opening and high global demand fueled by aluminum deficits, short-term profit booking quickly locked the stock into a five percent lower circuit, settling at ₹500.65 on the BSE by mid-morning.  The other three demerged pure-play entities witnessed mixed debut performances during early trading hours.

Vedanta Power Limited listed at ₹41.30 on the BSE and ₹41.80 on the NSE, subsequently gaining over three percent to trade around ₹43.35 as investors backed its domestic energy expansion plans. Meanwhile, Vedanta Oil and Gas Limited (formerly Malco Energy) opened its market account at ₹39 on the BSE and ₹38 on the NSE, before facing a minor post-listing dip.

Vedanta Iron and Steel Limited completed the listings, debuting at an accessible price point of ₹22.25 on the BSE and ₹20 on the NSE.Under the court-approved 1:1 demerger framework, eligible equity shareholders received one equity share of each of the four newly minted pure-play firms for every single share held in the parent entity on the record date. 

To prevent immediate speculative price manipulation, the bourses have temporarily categorized all four newly listed stocks under the Trade-to-Trade (T2T) settlement segment, requiring mandatory physical delivery for all transactions