However, investors should note that May 1 is a public holiday. The company’s shares will start trading without the demerged entities from April 30, which will serve as the ex-date. Investors buying the stock on or after this date will not be eligible for the demerger benefit, while those purchasing shares before the ex-date will qualify, Nuvama said in a report.
The company will also conduct a special price discovery session between 9:15 am and 9:45 am on April 30, with normal trading beginning from 10:00 am to reflect ex-demerger pricing. April 29 will be the cum-date, meaning the stock will still carry the demerger benefit. Since India follows a T+1 settlement cycle, investors need to buy at least one trading day before the ex-date to be eligible.
When will shares list?
Listing timelines can vary widely, typically ranging from about three weeks to several months, depending on regulatory clearances and operational requirements. In the case of Vedanta Ltd, each demerged entity will need to go through separate approval processes before being listed.
According to Nuvama Alternative & Quantitative Research, given the scale of the demerger, the listings are expected to be completed within a relatively shorter window of around four to eight weeks.
Vedanta demerger ratio
In an exchange filing released on Monday, Vedanta announced that each of its eligible shareholders will get one share of Vedanta Aluminium Metal Ltd (VAML), one share of Talwandi Sabo Power Ltd (TSPL), one share of Malco Energy and one share of Vedanta Iron and Steel, for every share held in Vedanta.
Vedanta’s long-awaited demerger plan received approval from the National Company Law Tribunal in December last year. When the company first announced the demerger in 2023, it had proposed splitting its Indian operations into six separately listed entities, including a standalone base metals business. However, the structure was later revised. Under the approved plan, the base metals business will remain within the restructured Vedanta, while four new listed companies will be created.
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Last month, Vedanta Chairman Anil Agarwal told the Financial Times that the long-delayed restructuring could create “phenomenal shareholder value”. Agarwal told the FT that the new entities emerging from the conglomerate will have a free hand to grow. A privately held parent company controlled by Agarwal will retain roughly half the shareholding in each of the demerged entities, he added.
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