Vedanta demerger ex-date: why shares fell 65% in 2026

What happened on Vedanta’s demerger ex-date

Vedanta Ltd’s long-awaited demerger reached a key market milestone on Thursday, April 30, 2026, when the stock started trading ex-demerger. The company had set May 1, 2026 as the record date, but May 1 is a market holiday (Maharashtra Day). That made April 30 the effective trading date on which the share price adjusted to exclude the value of the four demerged businesses.

The adjustment looked like a steep fall on many trading screens, with Vedanta appearing to crash by about 63% to 65% from the previous close. But the move was primarily an accounting and price discovery reset linked to the demerger structure. Investors eligible for the demerger are expected to receive shares of the new entities later, which is why the apparent portfolio drawdown is described as an unrealised change until the listings and share credits are completed.

Key dates investors tracked

Vedanta’s board fixed May 1, 2026 as the record date to identify eligible shareholders. Since the market is shut on May 1, the stock traded ex-demerger on April 30. Wednesday, April 29, 2026 was stated as the last day to buy Vedanta shares to be eligible for the demerger benefits. Investors buying on April 30 were not expected to qualify for share allotment in the newly formed companies.

The exchanges also ran a special pre-open session (SPOS) from 9:15 am to 9:45 am on April 30 to determine the post-demerger adjusted price. Regular trading began at 10 am.

How Vedanta is splitting into five entities

Vedanta is demerging into five separate businesses, with the listed parent continuing as one entity and four additional entities to be listed later. The entities named in the provided details include:

• Vedanta Aluminium Metal Ltd (VAML)
• Vedanta Power Ltd (VPL)
• Vedanta Oil & Gas Ltd (VOGL)
• Vedanta Iron and Steel Ltd (VISL)
• Vedanta Ltd (existing listed entity)

Some reports also referenced the operating names involved in the carve-outs, including Talwandi Sabo Power Ltd (TSPL) and Malco Energy Ltd (MEL), and stated these will be renamed as part of the restructuring.

Why Vedanta’s share price “crashed” by about 65%

On the ex-date, Vedanta’s price reset because the stock began trading without the embedded value of the four demerged units. On BSE, Vedanta fell nearly 65% to an intraday low of Rs 271.50 versus the previous day’s close of Rs 773.25. At the time of writing in the provided material, it traded at Rs 276.40, down 4.9%, with a market capitalisation of Rs 1,08,141.78 crore.

A separate market update described the stock closing at Rs 773.60 on Wednesday and opening at Rs 289.50 on Thursday, with a later move to Rs 274.30. That update also noted market capitalisation falling to about Rs 1.13 lakh crore from around Rs 3 lakh crore, reflecting the removal of the demerged businesses’ value from the parent’s traded price.

The 52-week high was stated at Rs 794.90, and the new 52-week low was cited as Rs 271.50 due to the demerger adjustment. The upper and lower circuit levels were given as Rs 319.50 and Rs 261.45, respectively.

How the SPOS price discovery worked

The SPOS window (9:15 am to 9:45 am) was used by the exchanges to determine the adjusted reference price after Vedanta started trading ex-demerger. Regular trading then began at 10 am. One explanation in the provided text described that the price of each demerged entity will be calculated using the difference between Vedanta’s closing price on April 29 and the opening price discovered during the SPOS on April 30.

This matters for investors because the “gap” between the pre-demerger close and the ex-demerger traded price is not described as a conventional one-day loss. It reflects that the market is now valuing only the residual Vedanta entity, while the four new businesses are expected to be listed separately.

What shareholders receive: the 1:1 allotment for new entities

The demerger was described as a simple vertical split for shareholders. For every 1 share of Vedanta held by eligible shareholders as of the record date, investors are expected to receive 1 share each of four newly formed companies. Investors also continue to hold the same number of shares in the existing Vedanta Ltd.

An example shared in the provided details illustrates the mechanics: if an investor held 100 Vedanta shares at an average price of Rs 400 before the demerger, they would still hold 100 Vedanta shares after the demerger at an adjusted average price. In addition, they would receive 100 shares each of Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power, and Vedanta Iron & Steel.

The portfolio value may appear sharply lower on the ex-date because the new shares are not yet credited or listed. The text notes that the credit of new stocks to demat accounts is expected within 45 days.

What changes inside the group after the split

As part of the restructuring, Vedanta will offload its stake in Bharat Aluminium Company Ltd (BALCO) to Vedanta Aluminium Metal Ltd (VAML). BALCO was described as Vedanta’s top high-quality aluminium producer, and the transfer is positioned as strengthening VAML.

The scheme also includes operational renaming steps. Talwandi Sabo Power Ltd (TSPL) is to be renamed to Vedanta Power Ltd, and Malco Energy Ltd (MEL) is to be renamed to Vedanta Oil & Gas. The scheme further includes certain non-convertible debentures that are part of the aluminium undertaking, which are to be transferred to VAML.

When the new Vedanta entities could list

The listing dates for the four new entities were not disclosed in the provided material. However, analysts at ICICI Direct were cited as expecting the demerged entities to list within 1 to 2 months following the record date. One line in the provided text added that, on that basis, the listing date could be expected in the first week of August 2026.

Until listing happens, investors cannot trade the demerged businesses independently on the exchanges. That gap is also why the ex-date price move can look extreme on charts, even though it is linked to the carve-out of value.

Broker and research views cited in the reports

ICICI Direct was quoted as estimating a revised sum-of-the-parts (SoTP) valuation of Rs 820 per share for all resulting entities combined and advised investors to “HOLD” the current Vedanta stock to participate in the post-listing outcome. The brokerage also said Vedanta’s post-demerger adjusted trading range could be around Rs 300 to Rs 325 per share.

Among the demerged companies, Vedanta Aluminium was described by analysts as the most attractive entity, with an expected listing valuation of Rs 400+ per share. The reasons cited included its strong contribution to group revenues and margins, along with favourable industry dynamics such as tight global supply, elevated aluminium prices, and capacity expansions.

Derivatives, indices, and other market plumbing updates

Nuvama Alternative Research said all active derivatives contracts expired on April 29, and new contracts with new pricing and lot size would be reintroduced on April 30 at 10 am. Nuvama also said Vedanta would continue to be part of the Nifty Next 50, while the other demerged entities would be reflected as dummy constituents until listing.

Another market explainer in the provided text noted Vedanta’s index weight at about 5.2% in the Nifty Next 50 pre-demerger, with an expected drop to around 2.3% post-demerger. Separately, a note stated Nuvama Institutional Equities expected Vedanta to have a market capitalisation of nearly Rs 1.14 lakh crore after the demerger adjustment.

Snapshot table: dates, prices, and key levels

Vedanta’s demerger journey and why it matters

Vedanta first announced its demerger plans in 2023 and initially aimed to split Indian operations into six separately listed companies, including a standalone base metals entity. Over time, the structure was revised. The process was described as facing significant delays, largely due to objections raised by the government.

The demerger plan received approval from the National Company Law Tribunal (NCLT) in December 2025, as stated in the provided material. The April 30 ex-date move is the market-facing step that converts the corporate action into a visible price adjustment and begins the countdown to crediting and listing the new entities.

Conclusion

Vedanta’s sharp one-day “crash” on April 30, 2026 was primarily the expected price adjustment as the stock began trading without the value of four demerged businesses. Eligible shareholders are set to receive one share each in the four new entities for every Vedanta share held, while continuing to hold the existing Vedanta shares at an adjusted price. The next key milestones cited are the credit of shares to demat accounts within 45 days and the subsequent listing of the new entities, which analysts expect within 1 to 2 months of the record date.