Ready for Vedanta's Split by September? Here's Your Guide! 🚀
Anticipated Vedanta Demerger Dates: Examining Potential Timelines and Crucial Factors Every Investor Should Consider
In the midst of Dalal Street's chatter, Vedanta's ambitious plan to break into four new entities has been a topic of fascination for over a year now. But when's the big split happening? Well, brace yourself - it's potentially set for September 2025!
The Lowdown on Vedanta's Demerger 📣
Vedanta's demerger is all about carving up four new companies from the parent Vedanta Limited, which will gracefully stand as the fifth entity. The new bands include:
- Vedanta Aluminium Metal
- Vedanta Power
- Vedanta Oil & Gas
- Vedanta Iron and Steel Limited
Each of these will soon swagger onto the stock exchanges. For each share you hold in Vedanta, you'll receive one share in each of the crisp, new companies. However, the record date to find out if you're eligible will be announced soon like a secret knock on your door.
According to Vedanta CFO Ajay Goel, the company's marching steadily towards completion by the end of Q2 FY26, aka September 2025.
Vedanta's Power-packed Q4 Results 🌟
While the company's prepping for a major metamorphosis, its Q4 of FY25 numbers are nothing short of spectacular!
- Revenue hit a whopping Rs 39,789 crore in Q4FY25.
- Profit attributable to shareholders skyrocketed by 154% YoY to a staggering Rs 3,483 crore, compared to a mere Rs 1,549 crore in Q4FY24.
- Consolidated EBITDA rose a colossal 30% to Rs 11,618 crore, heading straight for a 12-quarter high.
- Pre-capex free cash flow stood tall at Rs 7,814 crore, while cash and cash equivalents jumped a healthy 34% year-on-year.
- Profit after tax came in at a robust Rs 4,961 crore, adding just 2% from the previous quarter.
Vedanta: It's a Buy, say Experts! 💰
Despite the impending upheaval, the brokerage firm Nuvama remains firmly bullish on Vedanta. In their latest report, they've cheekily maintained a 'Buy' rating on the company. They cite the strong prospects in the aluminium business, the steady reduction of debt, and expected earnings growth over the next two years as their reasons for optimism.
According to the brokerage report, net debt (excluding Hindustan Zinc and including buyers' credit) peaked in Q3FY25 and has since plummeted by Rs 1,130 crore, leaving a hefty Rs 68,400 crore at the end of Q4. They forecast this number will continue to shrink to around Rs 61,600 crore by the end of FY26.
While Vedanta had earlier indicated the demerger could wrap up by the end of Q2FY26 (September 2025), the brokerage, however, suggests that regulatory hurdles may delay the process. They've even hinted that the demerger may be delayed beyond Q2FY26 as it awaits crucial regulatory approvals.
Despite this potential delay, they see aluminium as Vedanta's biggest growth engine in the coming years. They predict a whopping 25% CAGR in aluminium EBITDA between FY25 and FY27, thanks to expansion in volume and a reduction in costs. They predict that the aluminium segment will position itself in the first decile of the global cost curve by FY28.
"We believe the aluminium segment will be the biggest growth driver... and the company will position itself in the first decile of the world cost curve by FY28E," the report said.
"We retain our positive stance on VEDL amid company-specific triggers such as deleveraging, high dividend, and EBITDA growth due to cost reduction and volume growth in aluminium and zinc from FY26," the note added.
A Look at Stock Market Stats 📈
- BSE Sensex: 4th Quarter, NSE Nifty
- Vedanta, Vedanta Group, Nifty 50, BSE Sensex
- Stock market stats, Share market news
- Our website App, Business news
[1]: Vedanta to create four new entities as part of demerger plan backed by Anil Agarwal[2]: Vedanta's year of megacorporate churn nears end as demerger sets new path[3]: Vedanta groups hands formally accepted creditors' approved draft scheme at Mumbai ETBF meeting[4]: Vedanta's proposed restructuring deal gets creditors' approval, but awaits NCLT sanction[5]: Vedanta demerger likely by September 2025: Anil Agarwal's company driven by growth strategy
- The anticipated demerger of Vedanta Limited is planned to occur in September 2025, carving out four new companies: Vedanta Aluminium Metal, Vedanta Power, Vedanta Oil & Gas, and Vedanta Iron and Steel Limited.
- These new entities will soon grace the stock exchanges, with each existing Vedanta shareholder receiving an equal share in each of the new companies, pending the announcement of the record date.
- In Q4 of FY25, Vedanta's earnings demonstrated a significant rise, with revenue reaching Rs 39,789 crore, profit attributable to shareholders increasing by 154%, and consolidated EBITDA soaring by 30%.
- Despite the upcoming demerger, the brokerage firm Nuvama remains bullish on Vedanta, citing strong prospects in the aluminium business, the steady reduction of debt, and expected earnings growth over the next two years.
- The demerger of Vedanta is expected to position the aluminium segment in the first decile of the global cost curve by FY28, making it the primary growth engine for the company.
- In the midst of discussions regarding the stock market, Vedanta and other related entities, such as the Nifty 50 and BSE Sensex, are regularly discussed in stock market stats, share market news, and business news.
- The demerger plan of Vedanta, backed by Anil Agarwal, was announced in September 2021, and the company is anticipated to complete the process by the end of Q2 FY26.
- Regulatory hurdles may potentially delay the demerger process, with suggestions that the demerger may be delayed beyond Q2FY26, as it awaits crucial regulatory approvals.
