Vedanta’s stock saw a dramatic drop of nearly 63 per cent on Thursday, but the steep fall wasn’t driven by panic selling. Instead, it reflected a technical adjustment following the company’s long-anticipated demerger, which split key business verticals into separate entities. After a special pre-open session, the stock debuted at Rs 289.50 on the NSE, aligning with its revised structure. The apparent plunge in Vedanta’s share price stems from the exclusion of four major divisions, Vedanta Aluminium, Vedanta Power, Vedanta Oil & Gas, and Vedanta Steel & Iron Ore, from its core business. With these segments now carved out, the company’s valuation has been recalibrated. Post-adjustment, Vedanta’s market capitalisation stands at over Rs 1.13 lakh crore, a significant shift from its earlier valuation exceeding Rs 3 lakh crore. The price discovery took place during a special pre-open session (SPOS) held between 9:15 am and 9:45 am, with regular trading resuming at 10 am. The conglomerate, led by Anil Agarwal, had initially set May 1 as the record date for the demerger. However, due to the Maharashtra Day market holiday, April 30 effectively became the cut-off date. This restructuring is among the largest seen in India’s metals and mining sector. Shareholders eligible under the scheme will receive one share each in four newly formed entities, Vedanta Aluminium Metal (VAML), Talwandi Sabo Power (TSPL), Malco Energy, and Vedanta Iron and Steel, for every Vedanta share held. The listing dates for these companies are yet to be announced. Following the split, Vedanta is expected to remain in the Nifty Next 50 index, while the newly created entities will temporarily appear as dummy constituents until they are listed. On global indices such as MSCI Emerging Markets and FTSE, Vedanta’s weight will be adjusted automatically. “Based on our market-cap estimates, Vedanta and Vedanta Aluminium are expected to be classified as large caps, while Vedanta Power, Vedanta Oil & Gas, and Vedanta Steel & Iron Ore fall under small cap,” the firm added. The company’s demerger journey began in 2023 and faced multiple revisions and regulatory hurdles before receiving approval from the National Company Law Tribunal in December last year. The restructured Vedanta will continue to hold its zinc and silver operations via Hindustan Zinc and serve as a platform for future growth ventures. Despite the restructuring, Vedanta reported robust financial results for the March quarter. Consolidated net profit surged 92 per cent year-on-year to Rs 6,698 crore, while revenue jumped 47 per cent to Rs 24,609 crore. The company also achieved its highest-ever EBITDA of Rs 18,447 crore, marking a 59 per cent increase, with margins expanding significantly. She is working as a Chief Copy Editor at Times Now’s Business Desk, where she covers key developments in the stock market, Indian corporates across se... View More