Archive · 23 Nov 2025
Vedanta's Demerger to Add ₹84 Per Share, Nuvama Expects
Vedanta is planning to split its business into five separate companies, which could add ₹84 to the value of each share.
A research firm, Nuvama, expects this demerger to increase Vedanta's fair value to ₹686.
The demerger is expected to improve the valuation of Vedanta's aluminium, steel, and power businesses.
Vedanta to split into five listed entities
Demerger expected to unlock ₹84 per share in additional value
Nuvama Research estimates fair value to increase to ₹686 post-demerger
Aluminium business's sensitivity to price change to increase post-demerger
Demerger to enhance valuation multiples of Vedanta's businesses
- Who
- Vedanta, Nuvama Research
- What
- Proposed demerger of Vedanta into five listed entities
- When
- Expected completion by end of FY26
- Where
- Stock market
- Why
- To unlock additional value and enhance valuation multiples
Pro-Demerger
Anti-Demerger
Value Unlocking
Pro-Demerger
Demerger will unlock additional value and enhance valuation multiples.
Anti-Demerger
Demerger may lead to increased complexity and potential disruption in operations.
- Demerger Impact on Share Value
- ₹84 per share
- Nuvama's Estimated Fair Value Post-Demerger
- ₹686
- Expected Increase in Aluminium Business Sensitivity
- 8%
- Expected Increase in EV/EBITDA Multiple for Aluminium Business
- 0.5 times to 6.5 times
