The share price of Vedanta is in focus as investors approach a crucial deadline. April 30 is the ex-date for its much-anticipated demerger. 

For investors, April 29  marked an important cut-off. Because of the T+1 settlement cycle followed in Indian markets, April 29 was effectively the last day to buy Vedanta shares, if one wants to be eligible for the demerger benefits. 

Those who would buy the stock on or after April 30 won’t  qualify for the share allotment under the demerger.

Vedanta demerger: What will happen on April 30 morning

A special pre-open session will be conducted on April 30 between 9:15 AM and 9:45 AM. 

This session is key to watch as it will determine the new price of Vedanta after the demerger.

The closing price on April 29 will represent the combined value of all five businesses. In the last trading session, the share price of the company ended the session at Rs 775, up 4.83% on NSE.

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The price discovered during the special session on April 30 will reflect only the value of the remaining Vedanta Ltd after spinning off the other businesses.

Why April 30 is the turning point

Although May 1 has been set as the official record date, the markets will remain closed that day due to Maharashtra Day. 

This shifts the actual trading mechanics one day earlier. As a result, Vedanta shares will start trading ex-demerger from April 30. 

Only shareholders who hold the stock in their demat accounts by the end of trading on April 29 will be eligible to receive shares in the newly created companies. Anyone buying the stock after that will miss out on this benefit.

What exactly is changing in the demerger

The restructuring plan involves splitting Vedanta into five separate listed companies. 

Post the demerger of the demerger of the company, the group will consist of –

– Vedanta Aluminium

– Vedanta Oil & Gas

– Vedanta Power 

– Vedanta Iron & Steel, and 

– the existing Vedanta. The parent entity will continue to house the base metals business along with its stake in Hindustan Zinc.

The share distribution, for every one share of Vedanta held, investors will receive one share in each of the four new companies, while also continuing to hold their existing Vedanta shares.

Vedanta demerger: Price reset does not mean loss

One key point that often confuses investors is the expected fall in share price after the demerger. Moreover, it is important to note that as per analysts, the stock may adjust to a lower range once it starts trading ex-demerger.

But, this drop should not be seen as a loss. The adjusted price will reflect only the residual business. Furthermore, the value of the other four businesses will be distributed through separate shares. This means that the total value remains the same but is split across multiple entities.

Vedanta demerger: What analysts are saying

Market experts believe the demerger could offer more clarity to investors by separating different business segments.

“Investors looking at Vedanta can consider participating in the demerger. Over the past six months, the stock has delivered strong returns, and based on our sum-of-the-parts (SOTP) valuation, the fair value of the combined businesses is around Rs 880–Rs 900, implying an upside of roughly 19% from the current market price. For long-term investors, the demerger provides the opportunity to hold shares in individual businesses and make targeted investment decisions based on their risk-reward preferences,” said Sunny Agrawal, Head of Fundamental Research at SBI Securities.

He also added a note of caution for short-term traders. “Tactical selling around the ex-date may not be necessary for long-term investors, but those looking to capitalize on short-term gains can do so with the understanding that fair value is around Rs 880–Rs 900.”

Vedanta demerger: ICICI Direct view

According to ICICI Direct, the expected price drop on April 30 to around Rs 300-Rs 325 should not be seen as a loss. It will only reflect the value of the remaining (residual) business after the demerger, while the value of the four spun-off entities will be held separately by shareholders and realised once they list.

The brokerage values the combined business at Rs 820 per share versus the current price of around Rs 725, based on a Sum-of-the-Parts (SOTP) approach. It expects revenue to grow at 18.3% and EBITDA (earnings before interest, tax, depreciation and amortisation) at 35.5% over FY25–27, with debt levels also improving. Its overall stance on the stock remains ‘Hold’.