What is effect of vedanta share price after demerger news on share market? Vedanta Limited informed the exchange last Friday.
Vedanta Share Demerger News
The veteran businessman Anil Aggarwal’s Vedanta Group announced demerger last Friday. In the ensuing days, Vedanta shares will likely be affected by this announcement. Investors are now anticipating Tuesday because the de-merger was revealed after the Indian stock market closed on Friday. Let us inform you that the market will be closed on Monday, October 2 in observance of Gandhi Jayanti.
Vedanta Share Price After Demerger News
Dalal Street has not yet noticed the effects of Vedanta’s demerger because the news was released after the Indian stock market closed on Friday. The effects of the Vedanta demerger would only be felt on Tuesday due to the Monday Indian stock market holiday. Although value unlocking may help Vedanta attract segment-focused investors, stock market experts told us that since Vedanta unlocked their business company after announcing this demerger. They insisted that the six new companies formed as a result of Vedanta’s demerger would maintain their core values, though.
The Vedanta demerger, according to Arun Kejriwal, founder of Kejriwal Research and Investment Services, aims to catch the attention of stock market investors who build their portfolios of stocks based on segments. As a result, this value unlocking process should be seen as the company’s rebranding with a single-minded focus on the segment.
What experts say
Value unlocking, in the opinion of stock market experts, can aid Vedanta in luring investors. The underlying principles of the businesses that emerge after Vedanta separates will not change. Arun Kejriwal, the founder of Kejriwal Research and Investment Services, commented on the Vedanta demerger, stating that “the aim is to attract the attention of stock market investors who add stocks to their portfolio on the basis of segment.” Therefore, this value unlocking exercise should be viewed as nothing more than a company rebrand with a niche focus.
In the short term, there may be some stock price fluctuations, but in the medium to long term, there won’t be any effects on Vedanta shares, according to Avinash Gorakshkar, Head of Research at Profitmart Securities. Gorakshkar said it’s still unclear how managers of sovereign wealth funds and international investors will respond to Vedanta’s separation announcement. Let us inform you that on Friday, Vedanta’s share price ended at 222.65 on the NSE and 222.50 on the BSE.
Which businesses are being separated?
According to Vedanta Ltd., it will divide its five businesses into separate corporations. Among these businesses, aluminum, oil and gas, and steel are widely used. In order to increase the value of the company and lower debt, the group also plans to restructure the zinc unit. According to the plan, shareholders who own shares of Vedanta Limited will receive one share of each of the five newly listed companies. The plan is anticipated to be finished in 12 to 15 months.
As stated, the company plans six separate listed entities, namely:
- Vedanta Aluminium
- Vedanta Oil & Gas
- Vedanta Power
- Vedanta Steel and Ferrous Materials
- Vedanta Base Metals
- Vedanta Limited
