Vedanta shares jump 5% after demerger. Should stocks be bought, sold or held?

Shares of Anil Aggarwal-led Vedanta on Monday closed at Rs. It jumped more than 8% to its intraday high of 295, as investors showed strong buying interest in the metals and mining sector following its split into four new entities last week.

The listing dates for the four newly demerged companies on BSE and NSE are yet to be announced. However, Nuwama Institutional Equities has indicated in its latest note that the entity is likely to debut on the exchanges in June 2026. Eligible shareholders will receive one share in each of the four new companies for every one share held in Vedanta on the record date.

Should you buy Vedanta shares after demerger?

For the demerged Vedanta, Nuwama paid Rs. 336 target price, following a special pre-open session last week on the BSE at Rs. 272 represents an increase of over 21% from the opening price.

According to Harshal Dasani, business head of INVasset PMS, the demerger has made Vedanta a more focused organization, though it is now more focused in nature. He noted that the company’s value is largely tied to businesses like Hindustan Zinc, Base Metals, Semiconductors, Display and Stainless Steel. While this shift may increase transparency, it also means that investors will need to reassess valuations compared to the previous diversified structure.

He warned new investors not to jump in just because a stock looks cheap. He added that the investment case will depend on factors such as debt allocation, valuation of demerged entities, commodity cycle, dividend visibility and capital allocation discipline. While existing shareholders can benefit from the clear structure, he advises fresh investors to wait for better price discovery before taking a strong position.

Vedanta Q4 snapshot

Investor sentiment has also been supported by the company’s strong Q4 performance. The Anil Aggarwal-led group reported a 92% year-on-year jump in consolidated net profit in the January-March quarter of FY26 from Rs. 3,483 crore as against Rs. 6,698 crores. Income from operations increased by 47% during the period to Rs. 24,609 crores.

Details of Vedanta Demerger

As part of the demerger, each eligible shareholder 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, the dates for the four new listings have not been announced yet.

Based on Nuwama’s 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-cap.

The company had set May 1 as the record date for the demerger, which coincided with a market holiday due to Maharashtra Day. Consequently, the stock reflects the demerger adjustment after the special pre-open session held on April 30.

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