Shares of the prominent mining conglomerate, Vedanta Limited, have doubled in price over the past year as investors placed significant bets amid demerger expectations and stable financial performance.
According to stock exchange data, Vedanta's shares surged by 84.5% between April 30, 2025, and April 29 of this year, significantly outperforming the BSE benchmark Sensex, which declined by over 3% during the same period.
During this rally, Vedanta's shares touched a 52-week high of ₹794.90, leading to an increase of ₹1.38 lakh crore in the company's market capitalization on the BSE.
The company's board had previously approved the demerger effective from May 1, paving the way for five independent and sector-specific businesses. This restructuring aims to enable each resulting entity to pursue its own growth strategy and attract a larger pool of investors.
Shareholders holding one share of Vedanta as of April 29 will receive four additional shares of the newly formed companies. The company's shares traded post-demerger on April 30.
According to Emkay Global Financial Services Ltd., "We believe this demerger will be a significant value-unlocking step for shareholders."
The firm further stated that the demerger is expected to benefit in two ways: 1) Potential valuation re-rating, as pure-play companies generally command higher valuations compared to diversified miners, and 2) Better capital allocation assisted by management teams specifically tailored for each business.
Vedanta had earlier stated that this demerger would help simplify the company’s corporate structure, featuring sector-focused independent businesses. Additionally, it will offer global investors—including sovereign wealth funds, retail investors, and strategic investors—opportunities to invest in pure-play companies linked to India’s growth story through Vedanta's world-class assets.
This will provide a platform for the resulting businesses to pursue their plans independently and align better with customer investments and end markets.
Under this demerger, Vedanta plans to separately list four organizations: Vedanta Aluminium Metal Limited (VAML), Talwandi Sabo Power Limited (TSPL), Malco Energy Limited (MEL), and Vedanta Iron and Steel Limited (VISL).
A top company official said on Wednesday that Vedanta will apply to the stock exchanges next week for the listing approval of its demerged entities. The shares are expected to be listed and commence trading by mid-June.
On Wednesday, Vedanta Limited reported an 89% increase in its consolidated Profit After Tax (PAT) for the quarter ended March 2026, which stood at ₹9,352 crore. This was driven by a rise in global metal prices, higher sales volumes, and the weakening of the Rupee exchange rate.
In the same period last year, the Anil Agarwal-led company had recorded a consolidated PAT of ₹4,961 crore. Revenue from operations during the latest fourth quarter also grew by 29% to ₹51,524 crore, up from ₹39,789 crore a year ago.
According to a report by Motilal Oswal Financial Services Ltd., Vedanta’s performance in Q4 FY26 was largely in line with expectations, supported by improved sales volumes and favorable LME prices.
Vedanta Limited is a world-leading producer in the sectors of metals, oil, gas, critical minerals, power, and technology.