Vedanta demerger: Entities to begin trading by mid-June; details for investors

Updates on demerged entities' listings

The metals and mining major will file with stock exchanges next week for listing approval of its demerged entities, with shares expected to list and commence trading by mid-June, a top official of the company said on Wednesday.

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

"In the next week, we will be filing with the exchanges for listing approval. 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.

What the Vedanta CFO said

Vedanta CFO Ajay Goel said the company's board had earlier approved the Vedanta demerger effective from May 1, and this will entail the creation of five independent sector-specific pure-play companies, allowing each company to chart out its own growth trajectory and attract investors.

The company, he said, has set May 1 as the record date for the demerger and added that the shareholders holding one share of Vedanta as of April 29 will receive four additional shares of the resulting companies.

"We are targeting listing and commencement of trading of these shares by the first quarter of FY'27," Goel said.

The demerger has been structured with precision on capital structure, aligning debt with the earning strength and growth stage of each resulting company, he said.

Vedanta Oil & Gas

Vedanta Oil & Gas and Iron & Steel businesses will emerge as close to zero net debt businesses, while the other three businesses will have net debt to EBITDA ratios in line with their debt servicing capabilities, Goyal said.

Vedanta had earlier said that the demerger will help in simplifying Vedanta's corporate structure with sector-focused independent businesses and provide opportunities to global investors, including sovereign wealth funds, retail investors, and strategic investors, with direct investment opportunities in dedicated pure-play companies linked to India's remarkable growth story through Vedanta's world-class assets.

It will also provide a platform for individual units to pursue strategic agendas more freely and better align with customers, investment cycles, and end markets, it added.

Demerger details

As part of the demerger, Vedanta plans to separately list four entities: Vedanta Aluminium Metal Limited (VAML), Talwandi Sabo Power Ltd (TSPL), Malco Energy Ltd (MEL), and Vedanta Iron and Steel Limited (VISL).

This means that post-demerger, the group will be split into five separately listed entities:

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

Vedanta Q4 FY26 earnings

In its earnings press release, Vedanta said it registered a record-best profit after tax (PAT) of ₹9,352 crore, up 89% YoY and 20% QoQ.

It added that it clocked best-ever quarterly revenue of ₹51,524 crore, up 29% YoY and 12% QoQ.

Vedanta said it recorded the highest-ever quarterly EBITDA of ₹18,447 crore, up 59% YoY and 22% QoQ, and the best-ever EBITDA margin of 44%, up by 915 bps YoY and 306 bps QoQ.

FCF (pre-capex) stood at ₹11,930 crore, up 53% YoY.

The net debt/EBITDA ratio at 0.95x, the best in 14 quarters, improved significantly from 1.22x in Q4 FY25.