After Vedanta demerger, should you consider adding stock to your portfolio?

Shares of Vedanta Ltd showed a significant drop in some trading apps on Thursday as the Anil Agrawal-led mining major traded ex-demerger today. The mining and metals major has spun off multiple businesses from itself. All eligible shareholders of Vedanta, as of the record date, will receive one share each of the newly demerged entities in a 1:1 ratio.

The demerger will be executed as a simple vertical split -- one share of each company for every share of Vedanta held. The move will result in the creation and subsequent listing of four new entities on the stock exchanges, including Vedanta Aluminium Metal Ltd, Talwandi Sabo Power Ltd (to be renamed Vedanta Power Ltd), Malco Energy Ltd (to be renamed Vedanta Oil & Gas Ltd) and Vedanta Iron and Steel Ltd.

Shares of Vedanta opened at Rs 290.50 on BSE, reflecting a 62.43 per cent fall from its previous close of Rs 773.25. The stock later declined further to an adjusted 52-week low of Rs 268.70.

Vedanta had announced May 1, 2026, Friday as the record date. However, with Friday being a market holiday, the stock traded ex-spin-off on Thursday, April 30, 2026.

What investors should do post demerger

Market expert Tapan Doshi said, "My expectation was around Rs 300–310. It has come down a little, possibly due to some profit booking. I think it will hover around Rs 300, which looks like a fair value, especially since the price has gone up recently. The other four entities that are expected to come will be quite interesting. If you look at aluminium, oil and gas, power, and iron and steel -- these are the areas where the buzz is. As for whether one should buy at this level, I would be cautious. Around Rs 300 appears to be fair value, and I don't see any premium at this stage."

Ravi Singh, Chief Research Officer at Mastertrust, noted that investors can consider buying the stock on dips with an expected target of Rs 300.

Kranthi Bathini, Equity Strategist at WealthMills Securities, stated, "Given its strong business model and ongoing investments in zinc, as well as in the copper and critical minerals segments, the outlook remains constructive. There is clear embedded value in Vedanta, and investors with a long-term horizon can consider holding the stock and buying on dips as it evolves into a demerged entity."