The Anil Agarwal-led Vedanta Group is set to list four new companies on the stock exchanges today, following a major corporate restructuring in the metals and mining sector. The special pre-open session for price discovery will run from 9 am to 10 am on the NSE and BSE, with trading commencing thereafter.
Vedanta's demerger involves the listing of Vedanta Oil & Gas, Vedanta Power, Vedanta Aluminium, and Vedanta Iron & Steel. These companies will initially trade in the Trade-to-Trade (T2T) segment, requiring all transactions to be settled through compulsory delivery. Vedanta Aluminium, the largest aluminium producer in India, is expected to list as a large-cap company with a fair value estimated at Rs 489 per share by SBI Securities. Analysts from ICICI Direct anticipate a listing valuation of over Rs 400 per share, citing strong industry dynamics and capacity expansion.
Vedanta Power, with over 4 GW of installed capacity, is expected to have a fair value of Rs 44 per share according to SBI Securities, while other brokerage estimates range from Rs 35 to Rs 60 per share. Vedanta Oil & Gas, aiming to scale production significantly, is valued at Rs 42 per share by SBI Securities. Lastly, Vedanta Iron & Steel, with operations in India and Africa, is expected to have a fair value of Rs 19 per share, though it may see less investor interest compared to larger industry players.
“Among the demerged businesses, Vedanta Aluminium stands out as the most attractive entity, with an expected listing valuation of Rs 400+ per share.”
ICICI Direct
The demerger marks a significant restructuring for Vedanta, aimed at unlocking value for shareholders and focusing on core business areas. This move is part of a broader trend of corporate restructuring in India's metals and mining sector, reflecting a strategic shift towards specialization and efficiency.
Background
The demerger marks a significant restructuring for Vedanta, aimed at unlocking value for shareholders and focusing on core business areas. This move is part of a broader trend of corporate restructuring in India's metals and mining sector, reflecting a strategic shift towards specialization and efficiency.
Investors and market watchers will be keenly observing the debut of these stocks on Dalal Street, as their performance could set the tone for future corporate restructurings in the sector.
