The special pre-open session (SPOS) on stock exchanges to determine Vedanta’s share price adjustment post demerger will run from 9:15 am to 9:45 am and regular trading in the stock will begin at 10 am.
Anil Agarwal-led group to set up on May 1 As of the record date of its dissolution, which is one of the largest corporate restructuring in the metals and mining sector of India. Since Friday (May 1) is a market holiday due to Maharashtra Day, Thursday (April 30) is the effective record date for the demerger.
What to expect from Vedanta’s share price?
Vedanta shares jumped nearly 5% to close at Rs 773.60 NSE On Wednesday. However, today it will adjust to the demerger and see a drop in value as it starts trading leaving four demerged entities.
Vedanta shares are expected to trade in the range of Rs 300-325 per share after the special pre-open session, ICICI Direct said in a recent report. It is important to note that the firm’s estimate is indicative, as it awaits the exact allocation of net loans among the resulting entities. market value of Vedanta At the time of release of the report it was at Rs 720 per share.
Meanwhile, Sunny Agarwal, Head of Fundamental Research, SBI Securities, said the fair value of the residual base metals business and its stake in Hindustan Zinc will be in the range of Rs 250-290 per share after the special pre-open session. “Volatility is likely to remain high over the next few days due to adjustments in active and passive funds,” he said.
Special Pre-Open Session on 30th April This is the moment when Vedanta’s three-year-old demerger story finally meets the price-discovery machinery of the market, said Harshal Dasani, business head, Invaset PMS. According to the analyst, Vedanta shares, excluding the demerged entities, will open in the range of Rs 300-325 per share, mainly based on its 63.4% stake in Hindustan Zinc, Copper, Ferro Chrome and the emerging displays venture.
“The remaining approximately Rs 400-475 of the pre-merger price is transferred to four different entities – aluminium, power, oil and gas, and Arron and Steel – which shareholders will hold as 1:1 entitlements until listing over the next four to eight weeks. Aluminum is clearly the crown jewel: 2.8 MTPA capacity, expanding EBITDA per tonne, and tight global supply make it the most likely beneficiary of a pure-play re-rating. According to Dasani, together with Hindustan, Zinc should get a major share of the group value after the group concession ends.
That said, the analyst points out two variables that will determine whether the sum-of-the-parts valuation (SOTP) of Rs 820-900 actually crystallizes – the final allocation of net debt across the five entities, and the pace of regulatory approval for listing. “For long-term investors, this is a value-unlocking event, not a trading event. Positioning for listing, not opening,” he said.
index position of vedanta
After the demerger, Nuvama Institutional Equities expects Vedanta’s market capitalization to be around Rs 1.14 lakh crore. It is noteworthy that at the end of the session on Wednesday, the market capitalization of Vedanta was more than Rs 3 lakh crore. “Based on our market-cap estimates, Vedanta and Vedanta Aluminum are expected to be classified as large caps, while Vedanta Power, Vedanta Oil & Gas and Vedanta Steel & Iron Ore fall under small caps,” it said.
Vedanta shares are part of the Nifty Next 50 index. On the global front, it is a part of the MSCI Emerging Markets Index as well as the FTSE Index. Nuvama said Vedanta will continue to be a part of the Nifty Next 50, while other separate units (aluminium, power, oil and gas, steel) will appear as dummy components till the listing. It said Vedanta’s weighting on the MSCI and FTSE indices will be automatically adjusted.
When will Vedanta’s four new stocks be listed on BSE and NSE?
As a part of the demerger, each of the eligible shareholders of Vedanta will receive one share of Vedanta Aluminum Metal (VAML), one share of Talwandi Sabo Power (TSPL), one share of Malco Energy and one share of Vedanta Iron & Steel for each share held in Vedanta. however, Dates for four new listings Has not been disclosed yet.
Vedanta first announced its demerger plan in 2023, proposing to split its Indian operations into six separate listed companies, including a standalone base metals unit. Over time, the structure was modified and faced considerable delays due to objections raised by the government.
The demerger plan later got approval from the National Company Law Tribunal (NCLT) in December last year. Under the approved plan, the base metals business will remain within the reorganized Vedanta, while four new listed companies will be created. The reorganized Vedanta will continue to operate the zinc and silver business through Hindustan Zinc and is envisioned as an incubator for future ventures.
Vedanta Q4 Results
Metals major Vedanta gave a report on Wednesday 92% year-on-year (YoY) jump Consolidated net profit for the March-ended quarter rose to Rs 6,698 crore, while revenue from operations rose 47% to Rs 24,609 crore during the quarter under review.
Vedanta reported its best-ever earnings before interest, taxes, depreciation and amortization (EBITDA) at Rs 18,447 crore, up 59% YoY, while EBITDA margins expanded 44% YoY by 915 bps YoY.
(Disclaimer: The recommendations, suggestions, views and opinions given by experts are their own. These do not represent the views of The Economic Times)