Synopsis: Vedanta’s demerger process is reaching its final stage, with four newly carved-out businesses set to begin independent trading, marking a significant restructuring aimed at creating focused growth platforms.
The shares of this large cap company majorly engaged in exploring, extracting and processing minerals and oil & gas. The group engaged in the exploration, production and sale of zinc, lead, silver, copper, aluminium and many more were in focus after the company’s demerger process reached the final stage of completion.
With the market capitalization of Rs. 1,20,870 Crores, the shares of Vedanta Ltd were trading at around Rs. 309 per share which is 14 percent discount from its 52 week high of Rs. 361 per share and is trading at a P/E of 14 whereas industry P/E stands at 27.9
What is the NEWS
Vedanta’s long-awaited demerger exercise is set to culminate on June 15, when four newly created entities Vedanta Aluminium Metal, Vedanta Oil & Gas, Vedanta Power, and Vedanta Iron & Steel will be listed on the BSE and NSE. The move follows the approval of the demerger scheme by the National Company Law Tribunal (NCLT) and represents one of the largest corporate restructuring exercises undertaken by the group.
Under the approved arrangement, shareholders of Vedanta Ltd will receive one share in each of the four demerged companies for every one share held in the parent company, ensuring that existing investors continue to participate in the future growth of all businesses. Prior to the commencement of trading, the exchanges will conduct a special pre-open session to facilitate price discovery for the newly listed entities.
Following the restructuring, Vedanta Aluminium Metal will house the aluminium business, Vedanta Oil & Gas will focus on hydrocarbon operations, Vedanta Power will manage the power generation portfolio, and Vedanta Iron & Steel will oversee the steel and related operations. The separate listings are expected to provide greater transparency into the performance of each vertical and allow investors to gain targeted exposure to specific sectors.
The June 15 listing therefore marks the final operational milestone in Vedanta’s demerger journey, transitioning the group from a single diversified entity into multiple independently traded businesses with distinct growth strategies and market identities.
About the Company and Financials
Vedanta Limited is one of India’s largest diversified natural resources companies, with operations spanning aluminium, zinc, lead, silver, iron ore, steel, oil & gas, power, and semiconductors. The company is a subsidiary of Vedanta Resources Limited and has a significant presence across India, South Africa, Namibia, and other regions. Through its integrated resource and energy businesses, Vedanta serves both domestic and global markets.
Year on Year analysis: Revenue from operations has increased from Rs. 16,686 Crores to Rs. 24,609 Crores, up 47 percent. Operating profit has increased from Rs. 5,246 Crores to Rs. 7,559 Crores, up 44 percent and net profit has increased from Rs. 4961 Crores to Rs. 9,352 Crores, up 88 percent
Quarter on Quarter analysis: Revenue from operations has increased from Rs. 21,337 Crores to Rs. 24,609 Crores, up 15 percent. Operating profit has increased from Rs. 6521 Crores to Rs. 7559 Crores, up 16 percent and net profit has increased from Rs. 7807 Crores to Rs. 9352 Crores, up 20 percent
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