Vedanta demerger: Aluminium prices hit 4-year high; spotlight on Vedanta Aluminium ahead of likely June listing

Earlier, on the demerger ex-date of April 30, the stock had fallen nearly 62.6% in early trade to ₹289.50 apiece from its previous close of ₹773.60 following a special trading session conducted by the exchanges.

The sharp fall was largely technical, as the stock price adjusted to reflect the separation of Vedanta’s business verticals into multiple independently listed entities.

Under the demerger scheme, Vedanta’s businesses are being split into five independent companies (including the existing one), and the parent stock now represents only the residual business value.

As part of the restructuring, shareholders of Vedanta received shares in the newly demerged entities, which include businesses such as aluminium, oil & gas, power, and steel.

According to the exchange filing, under the composite scheme of arrangement, shareholders of Vedanta received equity shares in four businesses in a 1:1 ratio.

Post demerger, the Vedanta group will comprise five standalone entities, each focused on a specific business vertical:

• Vedanta (Residual Entity): Will continue to house the group’s base metals business, including zinc, silver and copper, along with its emerging electronics ventures.
• Vedanta Aluminium: Will focus exclusively on the aluminium business, one of the group’s key growth segments.
• Vedanta Oil & Gas: Will house the upstream oil and gas exploration and production operations.
• Vedanta Power: Will manage the group’s merchant power generation business.
• Vedanta Iron and Steel: Will oversee the iron ore mining and steel operations.

Vedanta Aluminium: What you need to know amid the rally in metal price

Aluminium prices surged to their highest level in more than four years on Tuesday amid concerns over potential production cuts in China, the world’s largest producer, along with ongoing supply disruptions in the Middle East, according to a Bloomberg report.

The industrial metal rose 0.6% to settle at $3,672.50 per metric tonne on the London Metal Exchange (LME), marking its highest level since March 2022. The report said traders are worried that Chinese smelters may be asked to reduce output as authorities conduct nationwide inspections related to energy consumption and emissions.

Chinese aluminium smelters have reportedly been operating above capacity to take advantage of the global supply shortage triggered by the conflict in the Middle East. Aluminium prices on the LME have rallied sharply since late February, as disruptions around the Strait of Hormuz raised concerns over regional supply flows.

Vedanta Aluminium

Vedanta Aluminium Metal Limited is one of the world’s leading producers of aluminium, the ‘Metal of the Future’.

Vedanta Aluminium, as per the company's press release, is India’s largest aluminium producer, accounting for more than half of the country’s total aluminium output. The company produced 2.37 million tonnes of aluminium in FY24 and has a presence across the aluminium value chain through its smelters, alumina refinery, and captive power plants in India.

The company manufactures a range of value-added aluminium products used across sectors such as infrastructure, transportation, and energy.

In 2023, it was ranked first in the aluminium sector in the S&P Global Corporate Sustainability Assessment.

Listing details

In April 2026, Vedanta Resources said shares of demerged entities are expected to list and commence trading by mid-June.

During an investor call on Q4 financial results, Vedanta Resources CEO Deshnee Naidoo said the demerger is now in its final stage.

"The shares of the resulting companies are expected to list and commence trading by mid-June," she said.

Vedanta Ltd is the Indian arm of Vedanta Resources.

About Aluminium

Aluminium is a key industrial metal widely used in sectors such as infrastructure, automobiles, power, construction, and renewable energy due to its lightweight and durable nature.

A rise in aluminium prices will benefit Vedanta Aluminium as higher metal prices can improve the company’s revenue realisation and profit margins.

Sustained strength in aluminium prices may also boost investor sentiment ahead of the company’s expected separate listing following the Vedanta demerger.