The demerger of Vedanta Group has made a bang in the stock market. On the very first day of the demerger, the group attracted the attention of investors and market experts by unlocking additional market value of about ₹49,000 crore. The long-awaited corporate restructuring proved that giving separate businesses independent identities could reveal their true value. Now a total of five companies of Vedanta Group are listed in the stock market and investors have got the option to invest in different sectors.
During trading on Monday, the total market capitalization of Vedanta Limited and its four newly listed companies reached about ₹3.52 lakh crore. This figure is about ₹49,000 crore more than Vedanta Ltd’s market value of about ₹3.03 lakh crore on April 29, before the demerger. Investors now place greater value on individual companies based on the potential of their businesses. This is the reason why there was a big jump in the total value of the group.
Aluminum business becomes the biggest star
The most talked about among the newly listed companies was Vedanta Aluminum Metal Limited. The market cap of the company reached about ₹1.94 lakh crore, which is more than 60 percent of the value of the entire Vedanta Limited before the demerger. This shows that the aluminum business is one of the group’s strongest assets and investors are quite bullish on its future.
Other new companies also got good valuation
The market cap of Vedanta Power Limited after the demerger was approximately ₹15,947 crore. Whereas the value of Vedanta Oil and Gas Limited was estimated at around ₹ 14,116 crore and the value of Vedanta Iron and Steel Limited was estimated at around ₹ 8,235 crore. However, the performance of shares of all companies was not the same on the day of listing. Profit booking was seen in some stocks, while some touched the upper circuit.
Shareholders got big benefits
Under the demerger plan, Vedanta investors have received one share each of the four new companies as of the record date. This has given investors the opportunity to hold stakes in different sectors within the same group. Analysts say Vedanta was earlier a victim of conglomerate discount due to its diverse businesses being under a single company. It was difficult for investors to determine the correct value of different businesses.
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SK Sharma is a content writer who writes on news, entertainment, and lifestyle topics. She has over four years of experience and is known for conveying information in simple and clear language.
