Vedanta Ltd is among top metal companies of India. Backed by billionaire Anil Agarwal, Vedanta is on the path of demerger in the ratio of 5:1, for unlocking its business value. In the past five sessions, Vedanta shares have zoomed by nearly 4%, as the company makes timely payment of its dues. At present, heavyweight metal stock is less than Rs 45 away from hitting the Rs 500 mark.
Vedanta Ltd Share Price:
After market hours of June 26, Vedanta stock closed at Rs 455.55 apiece, up by 3.04% on BSE, with market cap of Rs 1,78,137.73 crore. The stock is nearing its 52-week high of Rs 527 apiece, while it surged by nearly 26% from its 52-week low of Rs 362.20 apiece.
At current market price, Vedanta is at least Rs 44.45 away from touching Rs 500 mark. As of June 26, Vedanta's price-to-equity ratio is at 9.94x, while return on equity (ROE) is at 23.80%.
The latest performance is fueled after Vedanta's parent company Vedanta Resources secured a term loan facility of approximately $600 million.
Vedanta Resources Debt:
Vedanta Resources bagged $600 million long-term loan facility for reportedly financing its high-cost private credit facility.
As per PTI report, the first tranche of $380 million has been committed, with the remaining $220 million expected to be finalised shortly with other participating banks. Lenders for the $380 million facility comprise a consortium of Gulf, Japanese, and European banks, including First Abu Dhabi Bank, Mashreq, Sumitomo Mitsui Banking Corp, and Standard Chartered.
Vedanta Ltd Demerger:
Vedanta is set to demerge into six listed entities. The demerger is of Vedanta and 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 agreement, every eligible shareholder of Vedanta will get one share each in the five newly listed companies, against their 1 existing share in Vedanta. Hence, the demerger ratio is of 5:1.
"Our demerger proposal has received overwhelming support from both Shareholders and Creditors, with over 99.5% of both stakeholder groups voting in favour of the demerger. This is a remarkable endorsement of our decision. Post-demerger, every Vedanta shareholder will receive one new share in each of the newly demerged companies. We believe this will unlock significant value for our shareholders and position each entity for long-term success," Agarwal said in the annual report.
Vedanta Ltd Interim Dividend:
Earlier in June, Vedanta stock turned ex-dividend on June 24 for its first interim dividend of Rs 7 per share for FY26. The total dividend payout is Rs 2,737 crore. Vedanta is among the leading dividend-paying stocks. In the past 12 months, Vedanta stock has delivered a whopping Rs 32.50 per share dividend.
BUY/SELL Vedanta Stock?
The consensus recommendation from 15 analysts for Vedanta Ltd. is BUY, as per Trendlyne data. Of the total, 8 analysts have suggested STRONG BUY on Vedanta, while 1 analyst give a BUY recommendation. EPS is expected to grow by 10.8% in FY26. The average target price on Vedanta is Rs 507.73 apiece, signalling a nearly 12% potential upside.
Disclaimer: The recommendations made above are by market analysts and are not advised by either the author or Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.
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