Vedanta Ltd. Share Price Attractive Post Demerger? Will Shareholders Get Big Dividend Rewards After 1:5 Split?

Vedanta Ltd.'s share price witnessed a buying trend on June 11th, taking it towards the Rs 310 mark. Overall, Vedanta gained by nearly 2%. The hottest topic concerning Vedanta is its 1:5 demerger. Vedanta is splitting into five entities effective May 1, 2026. Its four new entities, engaged in power, oil & gas, iron & steel and aluminum, are expected to list in mid-June 2026.

Vedanta is among the highest dividend-paying stocks and holds the title of highest dividend yield, 11.15%, in a non-PSU. Many are wondering what will happen to its dividend once the demerged entities list on BSE and NSE.

Vedanta Ltd Share Price

After market hours of June 11, Vedanta stock ended at Rs 305.05 apiece, up by 1.92% on BSE, with market cap of Rs 1,19,286.39 crore. The stock is racing towards its 52-week high of Rs 360.70 apiece. Post demerger record date, Vedanta shares have grown by around 2.3% in over a month.

The stock was around RS 773.25 on April 29, 2026, before it adjusted to the demerger ratio on April 30th. On the last trading day of April, Vedanta was around Rs 271.60.

Vedanta Ltd Dividend:

Before the demerger, Vedanta had delivered up to Rs 34 per share dividend in a span of 12 months. Its last dividend was of Rs 11 per share with record date of March 28, 2026.

It needs to be noted that Vedanta has distributed a whopping 40 dividends since September 2003.

At the current market price, Vedanta has a dividend yield of 11.15% which is the highest among the metal stocks and private company stocks.

Vedanta 1:5 Demerger:

Vedanta is demerged into five entities and its effective date is on May 1, 2026. The company still continues to trade under the scrip name of Vedanta Ltd and will stay the parent company of its subsidiary, Hindustan Zinc.

However, four new businesses of different segments, will be listed as well. These include Vedanta Aluminum, Vedanta Power, Vedanta Oil & Gas, Vedanta Iron & Steel Ltd.

As per reports, the listing can be expected in mid-June.

What Will Happen To Vedanta Dividends?

According to BP Wealth, the demerger effective 1st May 2026 fundamentally changes this structure, with each of the five entities now operating independently with its own management, capital structure and dividend policy.

Also, it added that post the demerger, this requirement has been removed, giving management more flexibility to use cash flows for dividends, expansion plans and debt reduction based on business needs.

Recently, billionaire Anil Agarwal told PTI that "Dividend is in my blood".

For the fiscal year 2025-26, Vedanta delivered Rs 7 per share as first interim dividend and Rs 16 per share as second interim dividend. For the first dividend, the total payout stood at Rs 2,737 crore and for the second, the payout was to the tune of Rs 6,256 crore.

Aggarwal told, "No matter what happens, there will always be a dividend payout by our companies." He stated that aggressive capital expenditure and regular dividend payouts will continue even after post-demerger.

BUY Vedanta Ltd Stock Price?

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

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