Vedanta Limited started its business Split into 5 different companies Have taken a big decision. Nuvama Institutional Equities raised its stake in Vedanta. ‘BUY’ ratings have been maintained and Target of ₹686 has given – i.e. 34% upwardThe brokerage believes the demerger will yield approx, ₹84 per share Additional value may be unlocked.

Key Highlights

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  Vedanta’s business will be divided into 5 companies

  
  


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  to the shareholders 1 old = 1-1 share in all new companies

  
  


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  Target of Nuvama: ₹686 (34% upside)

  
  


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  from demerger ₹84/share Hope to unlock value

  
  


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  Strong operations in Aluminium, Power, Zinc → Valuation multiples to improve

  
  


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  in december 2025 NCLT orderProcess likely to be completed by end of FY26

  
  


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  By January 2026 ₹20 DPS (dividend) estimate

  
  

Vedanta Limited has reorganized the company to better run its large and diverse business. 5 different listed companies A distribution plan has been presented. Under this, Vedanta shareholders will also be given shares in four new companies in exchange for each of their shares. 1:1 ratio Will get shares. That means any investor will become the owner of 5 different listed units with a single share.

Five companies formed after demerger:

1. 
   

   Vedanta Ltd (Core Metals + Zinc + Misc.)

   
   


2. 
   

   Vedanta Aluminum Metal

   
   


3. 
   

   Vedanta Power

   
   


4. 
   

   Vedanta Oil & Gas

   
   


5. 
   

   Vedanta Iron & Steel

   
   

These new units will be listed separately on NSE and BSE. The Mumbai bench of NCLT has reserved its decision on the demerger and is expected to Order will be received in December 2025,

According to Nuvama Research, the demerger is based on the “3D Strategy” — Delivery, Demerger and Deleveraging — which will improve both the company’s fundamentals and valuation. The brokerage estimates that individual businesses will get multiples commensurate with their original valuations, resulting in around ₹84 per share The value of can be unlocked.

The company’s cashflow is improving due to growth in aluminum, steel and power businesses and reduction in costs. Nuvama says EV/EBITDA multiple of aluminum unit to rise post demerger increased from 6.0x to 6.5x Even if it happens, this alone ₹36 per share Value may be added.

Also, the company has given a positive signal by withdrawing from buying debt-ridden JP Associates. Other than this ₹20 per share by January 2026 The possibility of getting dividends is also a big attraction for investors.

Impact for Investors

If the demerger is approved on time, it could prove to be a big benefit for shareholders investing in a large group like Vedanta to get direct stake in different business units. There is scope for further upside in the stock due to value unlock and better multiples.

Summary Table

FAQ

1. Will the demerger increase the stock price?
According to the brokerage, yes — there is potential for value unlock of around ₹84/share.

2. How many shares will the investor get?
One of the four new companies on Vedanta share 1-1 share will get.

3. When will this process be completed?
Order in December 2025 and complete demerger by end of FY 2026.

4. Will dividend also be available?
Yes – till January 2026 ₹20 per share There is a possibility of giving.