Vedanta Aluminium Metal shares fall 3% as firm plans to double production capacity to 60 LTPA

Recently listed Vedanta Aluminium Metal shares slipped as much as 2.7% to an intraday low of ₹465.1 apiece on Tuesday, June 23, after the company said it plans to double its production capacity to 60 lakh tonnes per annum (LTPA) to meet rising demand from infra, automotive and electrification sectors.

“With its vision to double the existing production capacity to 60 lakh tonnes per annum, deep backward integration and structural cost advantages, it is set to achieve among the lowest costs of production globally while upholding the highest standards of quality, serving demand across key global markets and benefiting from long-term tailwinds in infra, automotive, electrification, aerospace and advanced manufacturing,” the statement said.

The company's current production capacity is 30 LPTA. The firm is also poised to emerge as the largest aluminium producer across the US, Europe, the Middle East, Australia, and Africa.

VAML officially commenced trading as an independent listed entity on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) from June 15, following the successful completion of Vedanta Group's demerger, which became effective on May 1.

The listing marks a major milestone in the company's evolution, creating a focused, pure-play aluminium business with enhanced strategic flexibility and stronger long-term growth visibility, the company said in a statement.

Vedanta Aluminium Metal share price trends

At 10:30 AM, Vedanta Aluminium Metal shares seen at ₹465.25 apiece on the National Stock Exchange, declining 2.76%.

Last week on June 15, the stock had debuted at ₹522 per share on the NSE and ₹527 per share on the BSE following the price discovery process. According to news reports, Vedanta Aluminium Metal is listed at a premium to street expectations. Leading analysts had earlier valued the stock at around ₹475–477 per share.

Analysts view Vedanta Aluminium as the group’s most valuable demerged entity and a key driver of future value creation, citing its large production capacity, low-cost operations, and strong position in the aluminium sector.

About the company

Vedanta Aluminium operates one of the world's largest alumina refineries at Lanjigarh and one of the world's largest aluminium smelters at Jharsuguda in Odisha, and the country's iconic aluminium producer Bharat Aluminium Company Limited (BALCO) at Korba in Chhattisgarh.

Further, it has captive bauxite and coal resources and nearly 4.5 GW of captive power generation capacity, supported by an expanding downstream manufacturing ecosystem.

Vedanta Aluminium currently contributes 50% of the country's aluminium production and has developed a diverse customer base across over 60 countries worldwide.