Vedanta completed a major corporate restructuring that split the company into five entities. The move boosted combined market capitalization by 67% to Rs 3.5 lakh crore. Vedanta Aluminium emerged as the most valuable unit among the new pure-play businesses.
The demerger simplified Vedanta Group's structure and aimed to unlock value for each standalone business focused on specific sectors. Four of the newly listed entities saw initial share price gains that later turned into losses on their stock exchange debut.
Despite the mixed debut performance, the combined value of the parent and the four new companies rose significantly. Investors paid a premium for exposure to pure-play operations in aluminium and oil and gas.
Vedanta Aluminium drove most of the value creation. The residual Vedanta entity also retained substantial valuation, while smaller verticals have yet to experience a full rerating.