1:6 Split: Metal Giant Vedanta Shares Hit New 52-Week High On Big Announcement; Splitting Up By Dec-2024

Billionaire Anil Agarwal-backed Vedanta share price touched a new 52-week high on April 18. The stock is just Rs 9 away from crossing the Rs 400 price level. Vedanta has been the top-performing metal stock on the NSE in the past month. The latest bullish trend is fuelled after Agarwal stated that Vedanta's demerger into 6 listed entities is to be completed by December 2024-end.

Vedanta's demerger is of a 1:6 ratio, where the company will be split up into six listed entities to unlock value. The demerger plan has been in full swing, which is why investors are further optimistic about Vedanta's shares.

Vedanta share price traded at Rs 390.55 apiece, at the time of writing, up by 3.32% on BSE with a market cap of Rs 1,45,472.49 crore. The stock was near its new all-time high of Rs 391.50 apiece which was witnessed in the early trade. YTD, Vedanta stock is up by 52% on BSE.

In a note, Agarwal said that FY25 is going to be a transformative year for the company on many fronts as it prioritizes disciplined growth, operational excellence and exploring opportunities along the value chain.

He further revealed that Vedanta's demerger is going to be completed by December 2024-end. Further, he reteriated Vedant's goal of achieving Group EBITDA of $7.5 billion within two years and deleveraging its parent Vedanta Resources by $3 billion in the next 3 years.

Last year, in September, Vedanta announced the creation of a demerger of metals, power, aluminium, and oil and gas businesses to unlock potential value. After the exercise, six independent verticals - Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power, Vedanta Steel and Ferrous Materials, Vedanta Base Metals and Vedanta Limited - will be created.

Under the demerger, for every share of Vedanta, shareholders will receive one share of each of the five newly listed companies. After the demerger, the businesses of Hindustan Zinc as well as the electronics business will remain with Vedanta Limited.

Vedanta Limited ("Vedanta"), a subsidiary of Vedanta Resources Limited, is one of the world's leading natural resources companies spanning across India, South Africa, Namibia, Liberia, UAE, Korea, Taiwan and Japan with significant operations in Oil & Gas, Zinc, Lead, Silver, Copper, Iron Ore, Steel, Nickel, Aluminium, Power & Glass Substrate and foraying into semiconductors and display glass.

In FY24, Vedanta's Alumina production at the Lanjigarh refinery was at 1,813 kt, up 1% YoY, while it recorded the highest ever cast metal aluminium production of 2,370 kt at our smelters up 3% YoY.

Also, in FY24, the company posted the best-ever mined metal production at 1,079 kt up 2% YoY, driven by improved mined metal grades. Refined metal also achieved its highest annual production. Additionally, silver recorded the highest volume in FY24 in line with management's operational & financial strategy, at 746 kt up 5% YoY. Refined lead production was at 216 kt, up 3% YoY.

Vedanta is a dividend king stock. The stock has the highest dividend yield of 26.23% in the Indian market. For FY24, Vedanta has delivered up to 2,950% amounting to Rs 29.50 per share cumulatively. In FY23, the company paid up to a 10,150% dividend valued to Rs 101.5 per share.