Vedanta is demerging into five separate listed entities. If you hold Vedanta shares, you will receive shares in four new companies in addition to your existing holding.
The record date is 1st May 2026. Since 1st May is a market holiday, 30th April 2026 becomes the ex-date. To be eligible, you must have bought Vedanta shares on or before 29th April 2026.
What is Vedanta splitting into?
Vedanta currently operates several large businesses (aluminium, power, oil and gas, and iron ore) under one listed entity. After the demerger, these will become independent listed companies:
- Aluminium: Vedanta Aluminium Metal Limited (VAML)
- Merchant power: Talwandi Sabo Power Limited (TSPL), renamed Vedanta Power Limited
- Oil and gas: Malco Energy Limited (MEL), renamed Vedanta Oil and Gas Limited
- Iron ore: Vedanta Iron and Steel Limited (VISL)
The remaining Vedanta entity will continue to hold the other businesses not part of this demerger.
Trading of shares
On 30th April 2026, Vedanta will go through price discovery in a special pre-open session from 9 AM to 10 AM. During this session, you can only place, modify, or cancel orders; order matching happens at the end of the session. Regular trading resumes from 10 AM to 3:30 PM.
All existing F&O (Futures and Options) contracts expiring in May, June, and July will expire on 29th April 2026 and will be reintroduced from 30th April with a revised lot size after the pre-open session.
What shares will you receive?
For every one Vedanta share you hold, you will receive one share each of VAML, TSPL, MEL, and VISL, while your existing Vedanta share is retained as well.
When will shares be credited?
The scheme becomes effective on 1st May 2026. Crediting shares to your demat account and listing on NSE and BSE typically takes 30 to 45 days from the record date. CDSL will email you once the shares are credited.
How does this affect your average cost?
Your total investment value does not change; it gets distributed across five stocks. Your average cost per share is recalculated for each company based on the cost of acquisition ratio, which Vedanta will announce.
For example, if you bought 100 shares at ₹500 each (total: ₹50,000) and the ratio is 50% to Vedanta and 12.5% to each new company, your adjusted cost becomes:
- Vedanta: ₹250 per share
- Each new company: ₹62.50 per share
The combined cost across all five holdings still adds up to ₹500. Once Vedanta announces the actual ratio, your Zerodha account will be updated automatically.
Tax treatment
Your holding period for the new shares is counted from your original Vedanta purchase date, not the demerger date:
- Long-term capital gains (LTCG): Selling after one year from your original purchase date attracts 12.5% tax on gains above ₹1.25 lakh.
- Short-term capital gains (STCG): Selling within one year attracts 20% tax.
Receiving shares through the demerger is not a taxable event; tax applies only when you sell.