The proposed demerger of Vedanta into five listed entities will unlock about ₹84 per share in additional value in each of the business valued separately.
Vedanta has decided to split its business into Vedanta, Vedanta Aluminium Metal, Vedanta Power, Vedanta Oil & Gas and Vedanta Iron and Steel.
All the four new verticals will be listed independently on NSE and BSE. Existing shareholders will receive one share in each of the new entities for every share held in Vedanta, maintaining a 1:1 ratio.
The Mumbai bench of the National Company Law Tribunal has reserved its judgment on the demerger.
Nuvama Research expects the proposed five-way demerger to unlock about ₹84 per share in additional value as each business is valued independently and multiples adjust to their underlying fundamentals.
The research firm expects an NCLT order in December and completion of the demerger process by the end of FY26, adding that the move comes as aluminium, power and zinc operations ramp up, costs decline and leverage trends improve.
Nuvama notes that Vedanta’s fair value is likely to see further improvement post-demerger. The firm believes the demerger will unlock value by enhancing the valuation multiples of businesses such as aluminium, steel and power.
“We estimate our fair value of ₹686 will be enhanced by ₹84 a share once the demerger comes into effect,” Nuvama stated.
All aluminium companies’ sensitivity to aluminium price change is 3–5 per cent, but post-demerger, Vedanta Aluminium’s sensitivity will be high at 8 per cent, it said.
With the demerger, the aluminium business shall command a higher EV/EBITDA multiple (6.0 times-plus). Assuming an even 0.5 times increase in multiple to 6.5 times, the fair value is likely to be higher by ₹36 a share, it said.
Published on November 21, 2025
