1:5 SPLIT-UP Of Mega Metal Cpmpany: BUY Vedanta Ltd Stock After Demerger Record Date? New Target Price

Vedanta Ltd. stock price has adjusted from above Rs 773 levels to below Rs 275 on BSE and NSE. This is due to its demerger into two separate entities. Last week, April 30th marked the record date for the Vedanta demerger and investors saw a huge 65% dip in their portfolio as Vedanta stock adjusted. However, investors need not to worry since the loss will be credited once the other four separate companies list on exchanges. That being said, is it time to invest in Vedanta stock?

Vedanta Ltd Stock Price:

After the closing bell of April 30th, Vedanta stock stood at Rs 271.60 apiece on BSE, down by 6.51% with market cap of Rs 1,06,206.14 crore. The stock touched a 52-week low of Rs 268.70 apiece on the record date, which was 65.2% down from its closing price of Rs 773.25 apiece on April 29.

Nonetheless, Vedanta's 52-week high level stays at Rs 794.90 apiece.

Should You BUY Vedanta Stock?

Brokerage Nuvama values Vedanta at Rs 936 per share for its consolidated business. However, the broker values the ex-date demerged Vedanta at Rs 336 per share, while its stake in subsidiary Hindustan Zinc is valued at Rs 317 and the base metals and other business valuation is at Rs 19.

Meanwhile, ICICI Direct has revised its sum of the parts (SoTP) valuation for all resulting entities combined is estimated at Rs 820 per share. The brokerage advised investors to HOLD onto the current Vedanta stock and play upon this demerger move as in sum total they stand to gain post listing of all entities

Post the demerger record date, the consensus recommendation from 14 analysts for Vedanta is BUY, as per Trendlyne data. The average target price is of Rs 863.86 for a 12-months period.

Vedanta Demerger Explained:

Vedanta is demerging its business into 5 separate entities with the record date fixed on May 1, 2026. The 1:5 split of the business will be named as:

1. Vedanta Aluminium Metal Ltd (VAML)

2. Vedanta Power Ltd (VPL)

3. Vedanta Oil & Gas Ltd (VOGL)

4. Vedanta Iron and Steel Ltd (VISL)

5. Vedanta Ltd (existing entity)

For every 1 stock that eligible shareholders hold of Vedanta Ltd, they will receive 1 new share each in the upcoming four newly formed companies. This means:

As per Kotak Neo, if you hold stocks of Vedanta, you will receive stocks of the newly demerged entities in a 1:1 ratio. You will continue to hold the same number of Vedanta Limited shares. However, the existing share price will be split across all entities based on the company-decided percentage.

The decline that was witnessed during the ex-date will be corrected and new stocks will be credited to your demat account within 45 days.

When Will New Vedanta Companies List?

Analysts at ICICI Direct expect the remaining demerged entities are likely to be listed within 1-2 months following the record date.

Hence, the listing date can be expected in the first week of August 2026.

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