Vedanta demerger: Record date, ratio out - Check who is eligible to receive shares of new listed companies

Anil Agarwal-led Vedanta Ltd has announced key steps to operationalise its previously proposed composite scheme of arrangement, as part of its ongoing strategic reorganisation.

The company's Board of Directors has fixed May 1, 2026 as the record date to determine shareholders eligible to receive shares in the resulting entities under the demerger.

Share entitlement details

Shareholders holding Vedanta shares in their demat accounts as on the record date would be eligible to receive shares of the newly demerged entities, in line with the approved scheme. The share entitlement ratio in the newly structured businesses is as follows:

Vedanta Aluminium Metal Ltd (VAML): 1 equity share (face value Re 1) for every 1 Vedanta share held

Talwandi Sabo Power Ltd (to be renamed Vedanta Power Ltd): 1 equity share (face value Rs 10) for every 1 Vedanta share held

Malco Energy Ltd (to be renamed Vedanta Oil & Gas Ltd): 1 equity share (face value Re 1) for every 1 Vedanta share held

Vedanta Iron and Steel Ltd (VISL): 1 equity share (face value Re 1) for every 1 Vedanta share held

What investors can do

Market veteran Arun Kejriwal, in an interaction with Business Today, said, "You are going to get five shares for what you currently hold in different businesses. So, that demerger reallocation and the sum-of-the-parts will kick in once all these companies are listed over the coming months. This will definitely give you a price that is higher than what you would pay for today's purchase of, say, one share. So, Rs 775, if we take that as a base price, the sum total could be around 10–20 per cent higher over about three months, which is the time it takes for all the shares to list and for price discovery to happen."

He added, "More importantly, once the demerger happens, there would be significant interest cost savings because the company is currently quite heavily leveraged. It would be able to deleverage some of its businesses, reduce high-cost debt and bring in lower-cost funds, which would significantly improve operating margins. The metal space -- whether aluminium or copper -- is doing quite well at this point in time, with global prices being quite conducive. Oil and gas is also performing well. Another key segment is zinc, which also produces a lot of silver. While silver prices have cooled off from their highs, they are still at elevated levels compared to the two-, three-, and five-year averages."

Reorganisation structure

The demerger will lead to the creation of four independent, sector-focused entities spanning aluminium, power, oil & gas, and iron ore & steel. As part of this process, Talwandi Sabo Power Ltd and Malco Energy Ltd will be rebranded to reflect their respective business focus.

Vedanta said the move is aimed at simplifying its corporate structure and creating standalone businesses aligned with specific sectors. The company expects the reorganisation to enable each vertical to pursue its strategic priorities independently while improving alignment with market cycles, customer needs and investment requirements.

The restructuring is also intended to enhance transparency in business performance and provide investors -- ranging from global institutions to retail participants -- direct exposure to distinct segments of Vedanta's portfolio.

Stock performance

Shares of Vedanta climbed 3.15 per cent in Tuesday's trade to hit a record high of Rs 794.90. At last check, the stock was up 0.26 per cent at Rs 772.65, rallying 60.02 per cent over the last six months.