Top stocks that unlocked value for investors through demergers and spinoffs; who's next?

Vedanta’s shares are buzzing in today’s session after four of its demerged entities got listed on the bourses. Post the demerger, the total value created for Vedanta’s shareholders is immense. The total value of residual Vedanta and its subsidiaries is ₹903 per share. This is 16% higher than the total value of Vedanta Ltd on the record date at ₹773 apiece. From considering it for delisting in 2020 to demerging its businesses, the journey has been phenomenal and created massive wealth for shareholders alongside the journey. Additionally, the company also paid huge dividends, with yields above 8% of the total value.

After Vedanta listed its demerged entities, the value-unlocking process is once again in focus. Here are the top five companies that created value for their shareholders through demergers, spinning off the business.

Tata Motors

Tata Motors demerged its commercial vehicles and passenger vehicles business and split it into two separate listed entities, namely Tata Motors Passenger Vehicles and Tata Motors Commercial Vehicles. Investors received the shares of two new entities in the ratio of 1:1, rewarding shareholders with an equal number of shares they held in the pre-demerged entity. Before the listing of new entities, the shares of Tata Motors were trading at ₹700-₹750 per share. Shares of TMPV are listed at ₹335 apiece and TMCV at ₹391 apiece, which were almost flat with the pre-listed entity. Tata Motors Commercial Vehicles' share price has scaled to a new record high of ₹508 apiece, up 30% from the listed price. While the passenger vehicle entity shares trade near its new listed price.

Siemens India

The power generation, transmission and energy grid equipment manufacturer spun off its energy business and listed it separately as Siemens Energy India Ltd in June 2025. The Siemens India, parent entity, shares traded at ₹3,361 apiece on 19th June and the shares of Siemens Energy India listed at ₹2,840 apiece and rallied up to ₹3,961 apiece. The pre-demerger shareholders have made decent gains and stand to reap the fruits of Siemens Energy India’s financial growth.

Raymond Ltd

The Mumbai-based, engineering-to-textile conglomerate demerged its real estate, textiles and engineering business in separated entities. The reality business remains net-debt free, which required separate value discovery. Additionally, it also provided a value-unlocking opportunity for investors who are interested in only real estate, without owning textile and engineering businesses. Raymond Ltd now trades with three separate entities, with Raymond Realty, which houses the real estate business, Raymond Lifestyle, which holds the textile business and the residual Raymond Ltd, which holds the engineering business.

ITC

ITC, one of India’s largest FMCG companies, also demerged its hotels business, which remained a capital-heavy segment. Shareholders who held 10 shares of ITC received 1 share of 1 share of ITC Hotels, which got listed at ₹180 per share. The ITC Hotels shares currently trade at ₹159 apiece, a discount to its listing price. Meanwhile, ITC shares are also trading sharply lower from their record high levels hit before the demerger. Post listing, ITC Hotels grew its revenue strongly to ₹3,560 crore in FY25 and ₹4,139 crore in FY26. Though the share price currently trades below its listing, it now provides an opportunity for investors to bet heavily on the hotel business, without participating in the regulatory perils of the cigarette business.

Potential value unlocking opportunities

The closest and the biggest value-unlocking opportunity lies with India’s biggest conglomerate, Reliance Industries. The company is planning to list its telecom business soon. It will allow investors to bet on a pure-play telecom business and its dominance in the telecom market. Investors will be keenly watching the announcement regarding the Jio IPO in the upcoming AGM on Friday, 19 June.