Vedanta will issue one share of every demerged entity for every one share that they hold of the current consolidated listed entity.
Here’s How It Works Today
The special price discovery session between 9:15 AM to 9:45 AM has concluded, as is the case with every company that undergoes a demerger process. Hindustan Unilever was a case in point recently, when it demerged its ice-cream business, Kwality Walls, into a separate listed entity.
Normal trading in the stock will begin from 10 AM. Starting that point, Vedanta Ltd. will begin trading ex-of its Aluminium, Power, Oil & Gas and Iron & Steel business.
What Is Left In The Listed Entity?
The currently consolidated Vedanta Ltd. will now comprise of its 60.71% stake it holds in Hindustan Zinc, Zinc International and the Copper business, which was earlier part of the demerger plan, but the plan was put on the back burner for the entity to grow in scale and then revisit it again.
The Valuation Picture
Brokerage firm Nuvama now values the consolidated Vedanta Ltd. at ₹936 per share before the demerger. Of which, the ex-demerger Vedanta Ltd. is valued at ₹336 per share, the stake in Hindustan Zinc is valued at ₹317 apiece, while the base metals and other businesses is valued at ₹19 per share.Most of the analysts who have coverage on Vedanta continue to maintain their “buy” rating on the stock.
Shares of Vedanta are currently trading at ₹276.4, after having made an initial low of ₹271.9.
