Vedanta demerger 2026: 1:1 share split guide

What changed for Vedanta shareholders

Vedanta Limited has completed a five-way corporate restructuring that separates its key verticals into five independently focused businesses. The demerger creates four newly formed companies while the existing Vedanta Ltd continues as the residual entity. The split is structured around sector-specific operations such as aluminium, power, oil and gas, and iron and steel. The residual Vedanta will continue holding the zinc business through Hindustan Zinc, along with zinc international and copper operations.

The move has been described as one of the biggest restructurings in India’s metals and mining history. For shareholders, the key point is that ownership is preserved through a proportional allotment of shares. The headline Vedanta share price can appear sharply lower because the stock is now trading ex-demerger, but the overall investment value is meant to remain intact once new shares are credited.

The five entities created under the scheme

Under the approved scheme of arrangement, Vedanta has split into five distinct entities. Four of these are new listed businesses created by carving out specific operations from the parent. The fifth is the existing listed entity, Vedanta Ltd, which remains as the residual company.

The newly created entities are:

• Vedanta Aluminium Metal Ltd (VAML)
• Vedanta Power Ltd (VPL) formerly Talwandi Sabo Power
• Vedanta Oil and Gas Ltd (VOGL) formerly Malco Energy
• Vedanta Iron and Steel Ltd (VISL)

The restructuring aims to give investors direct exposure to each vertical rather than holding them inside a single conglomerate structure.

Record date and who was eligible

The record date for the Vedanta demerger was May 1, 2026. This is the date on which the shareholder register was checked to determine eligibility for receiving shares in the demerged companies. Investors whose names appeared as Vedanta shareholders on the record date were entitled to the share allotment in all four carved-out entities.

The eligibility rule also depended on when the shares were bought. Anyone who bought shares on April 30 or after would not receive the demerged company shares, as they would not be on the register for the record date framework described. Separately, the demerger is also described as being effective April 30, 2026, which aligns with the stock beginning to trade on an ex-demerger basis.

The 1:1 share entitlement ratio explained

The share entitlement ratio has been set at 1:1 for each of the four newly created companies. For every one share held in Vedanta Ltd on the record date, shareholders are entitled to receive:

• 1 share of Vedanta Aluminium Metal (VAML)
• 1 share of Vedanta Power (VPL)
• 1 share of Vedanta Oil and Gas (VOGL)
• 1 share of Vedanta Iron and Steel (VISL)

Shareholders also retain their existing Vedanta Ltd shares. So, after allotment, an investor effectively holds five stocks linked to the earlier single holding.

To illustrate the same structure using the example provided: if you held 500 shares of Vedanta on April 29, you will receive 500 shares in each of the four new companies, in addition to continuing to hold your 500 shares of the residual Vedanta Ltd.

How ₹1,00,000 of Vedanta value is split across businesses

For an investor holding ₹1,00,000 worth of Vedanta before the demerger, the article provides an illustrative allocation of how value is attributed across the five resulting businesses. This does not change the total investment value, but shows how the value is split across the post-demerger entities.

This split is presented as an attribution framework for the value inside Vedanta prior to the restructuring.

Why Vedanta’s stock price fell on the ex-demerger day

Vedanta began trading on an ex-demerger basis after a special price discovery session. When a stock turns ex-demerger, its price typically resets to exclude the value of the businesses that are being carved out. This can make it look like the stock has declined sharply, even though the shareholder is set to receive additional shares in new companies.

The article’s core explanation is that this is a standard adjustment seen during corporate restructurings. In simple terms, the apparent drop in the parent stock price is balanced by the value of the shares that will be credited in the demerged entities. As a result, the overall investment value is described as remaining intact, while being distributed across five listed stocks.

Cost of acquisition and demat credit timeline

While the number of shares received is straightforward, the investor’s average cost per share will change across the five holdings. The article notes that the average cost for each company will be adjusted based on a cost of acquisition ratio that Vedanta will announce. Until that ratio is published, investors cannot finalise the precise cost base for each resulting stock.

A hypothetical example is provided to explain how the adjustment works. If an investor bought 100 shares at ₹500 each (total ₹50,000) and the split is 50% to Vedanta and 12.5% to each new company, then the adjusted cost becomes ₹250 per share for Vedanta and ₹62.50 per share for each new company. The combined cost across all five holdings still adds up to ₹500 per original share.

The article also states that the decline witnessed during the ex-date will be corrected and new stocks will be credited to the demat account within 45 days.

Tax and holding period points mentioned

The demerger itself is described as not being a taxable event when shares are received. Tax becomes relevant when an investor sells any of the resulting shares.

The holding period for the new shares will be counted from when the investor originally bought the Vedanta shares, not from the demerger date. If sold after holding them for more than a year from the original purchase date, gains are taxed as long-term capital gains (LTCG) at 12.5% above ₹1.25 lakh. If sold within one year from the original purchase date, short-term capital gains (STCG) tax of 20% applies.

Key dates and entitlement summary

What investors should track next

The article makes two practical next steps clear. First, investors should watch for Vedanta’s announced cost of acquisition ratio, which will determine how the original purchase price is apportioned across the five holdings. Second, investors should monitor when the new shares are credited in demat accounts within the stated timeline.

The broader change is structural rather than immediately economic: the total investment value is described as staying the same, but split across five stocks. The key operational milestone ahead is the post-demerger demat update and the company’s final cost allocation communication.