Demerger! Vedanta Stock After 1:5 Split: Who Will Get 1 Share Each In 4 New Listed Firms? BUY Metal Stock?

Vedanta Ltd.'s share price dropped sharply on Monday, June 15, after its 1:5 demerger completed on stock exchanges. Vedanta Power, Vedanta Aluminium, Vedanta Iron & Steel and Vedanta Oil & Gas have debuted strongly on BSE and NSE. The main Vedanta Ltd. shareholders will gain 1 share each in these four companies.

Vedanta Ltd Stock Price:

Vedanta stock witnessed a roller coaster ride in less than two hours of the June 15th trading session. At first, the stock opened higher at Rs 313.95 apiece on BSE, compared to the previous close of Rs 309.50 apiece. Then the stock gained nearly 3% to hit an intraday high of Rs 318.60 apiece, closing more gaps towards Rs 360.70 apiece.

However, right after Vedanta Group's four companies listed on BSE and NSE, Vedanta stock price alone toppled and dropped nearly 1.6% to hit an intraday low of RS 304.70 apiece.

At the time of writing, Vedanta stock traded at Rs 306.45 apiece, down by 1% with a market cap of Rs 119,833.84 crore.

Vedanta 1:5 Stock Split:

Vedanta stock split into a 1:5 stock split for Vedanta, part of the demerger on June 15th. The companies are available on BSE and NSE.

Vedanta stock demerged into five entities due to a 1:5 split, effective May 1, 2026. These included power, oil and gas, iron and steel, and aluminum, while Vedanta traded as a single entity.

The new listed companies are Vedanta Power, Vedanta Iron & Steel, Vedanta Oil & Gas and Vedanta Aluminium.

Vedanta 1:1 Demerger Benefits:

As part of the demerger, Vedanta's shareholders will get 1 share each in these four new companies. The ratio is 1:1. However, the eligibility criteria are important here.

Vedanta had fixed May 1st as the record date to identify eligible shareholders for the 1:5 demerger. But because May 1st was a market holiday, the record date was shifted to April 30, 2026. Hence, only those investors will be eligible who held Vedanta shares in their portfolio as of April 30, 2026.

This is the date on which Vedanta's shareholder register was checked to determine who was eligible to receive shares in the four newly created companies. Every investor whose name appeared as a Vedanta shareholder on this date was entitled to receive shares in all four demerged entities, as per Bonanza Wealth.

These investors' portfolios had recorded unrealized losses due to the adjustment to the demerger on April 30th. Hence, on June 15th, their portfolio will see a significant shift.

Notably, if you bought fresh shares of Vedanta after May 1st, then you will not be eligible for new shares in the other four companies.

Explaining in detail, the Bonanza Wealth blog stated the 1:1 ratio makes this relatively simple to understand. If you held 500 shares of Vedanta on April 29, you will receive 500 shares in each of the four new companies, in addition to continuing to hold your 500 shares of the residual Vedanta Limited. The credit of these shares to your demat account will happen after the listing process is completed, which takes some time from the record date.

BUY Vedanta Stock?

The consensus recommendation from 14 analysts for Vedanta is BUY, as per Trendlyne data. The highest target price is of Rs 387 by BP Wealth.

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