Vedanta Ltd, one of India’s largest metals and mining conglomerates, has firmly entered the spotlight as it prepares for a landmark 1:5 demerger in 2026. The company’s stock recently surged to a fresh 52-week high, reflecting growing investor confidence ahead of the corporate restructuring.
With the demerger process officially entering the execution phase following NCLT approval, market participants are now asking a crucial question: Is it the right time to buy more Vedanta shares, or should investors consider booking profits?
Let’s take a closer look at what’s driving the rally and what lies ahead.
Vedanta Share Price Performance: New High Signals Strong Momentum
Vedanta Ltd closed at ₹601.10 per share on the BSE on December 26, gaining 0.5 percent in the session. During intraday trade, the stock touched a new 52-week high of ₹607.65, before witnessing mild profit booking.
So far in 2025, Vedanta has delivered an impressive year-to-date gain of over 35 percent, outperforming many peers in the metals and mining space. The company’s market capitalisation currently stands at approximately ₹2.35 lakh crore, placing it firmly among India’s large-cap heavyweights.
The rally is being fueled by a combination of strong commodity prices, improving operational performance, and optimism surrounding the upcoming demerger.
1:5 Vedanta Demerger: What Does It Mean for Shareholders?
Earlier this month, Vedanta received approval from the National Company Law Tribunal (NCLT) for its long-awaited demerger. Under the approved scheme, one Vedanta entity will be split into five separate listed companies.
Importantly, Vedanta Ltd will continue to trade on both the BSE and NSE, while four new companies will be listed as independent, sector-focused entities.
Existing shareholders will receive equity shares in each of the four newly listed companies in proportion to their current holdings, ensuring continuity of ownership and direct exposure to individual business verticals.
List of Vedanta Group Companies After Demerger
Post-demerger, the Vedanta Group will consist of the following five listed entities:
1. Vedanta Aluminium
A globally competitive, fully integrated aluminium producer with a strong focus on cost efficiency, value-added products, and low-carbon aluminium solutions.
2. Vedanta Oil & Gas
India’s largest private oil and gas exploration and production company, with extensive onshore and offshore assets aimed at boosting domestic energy security.
3. Vedanta Power
This entity will house the group’s power generation assets and explore opportunities in India’s evolving power and energy market.
4. Vedanta Iron & Steel
A vertically integrated iron ore and steel business with potential for downstream expansion and future green steel initiatives.
5. Vedanta Limited (Residual Entity)
The parent company will retain its stake in Hindustan Zinc Limited and act as an incubator for emerging and strategic businesses aligned with India’s long-term growth.
Why Vedanta Chose to Demerge
The primary objective of the demerger is to unlock long-term shareholder value. By creating pure-play companies, Vedanta aims to provide investors with clearer visibility, sharper capital allocation, and focused growth strategies for each business segment.
The restructuring also aligns well with India’s infrastructure push, energy transition goals, and rising global demand for metals and resources.
Brokerage View: Should You Buy Vedanta Stock Now?
Leading brokerages remain optimistic on Vedanta’s outlook.
Emkay Global has highlighted strong earnings potential, estimating EBITDA of ₹258 billion, nearly 17 percent higher than market consensus. The brokerage also noted that Vedanta’s silver exposure is undervalued, with every USD 1 per ounce movement in silver prices impacting Hindustan Zinc’s EBITDA by around 1 percent.
ICICI Direct, on the other hand, has retained its BUY rating on Vedanta with a revised target price of ₹650. The brokerage cited robust non-ferrous metal prices, strategic expansion plans, controlled balance sheet leverage, return ratios above 20 percent, and an attractive dividend yield of nearly 6 percent.
Final Take: Buy More or Book Profits?
Vedanta’s strong rally reflects genuine structural improvements rather than short-term speculation. While some near-term consolidation cannot be ruled out after the recent run-up, the medium-to-long-term outlook remains positive, especially for investors willing to hold through the demerger.
For long-term investors, Vedanta’s transformation into five focused entities could unlock meaningful value over time. Conservative investors may consider partial profit booking, while growth-oriented investors may view dips as buying opportunities.
FAQs About Vedanta Demerger
When will Vedanta’s 1:5 demerger be completed?
The demerger is expected to be executed in phases during 2026, following regulatory and procedural clearances.
Will Vedanta shareholders get free shares after demerger?
Yes. Existing shareholders will receive equity shares in the four newly listed companies in proportion to their current Vedanta holdings.
Will Vedanta Ltd remain listed after demerger?
Yes. Vedanta Limited will continue to trade on both BSE and NSE as the parent company.
What is Vedanta’s latest target price?
Brokerage targets range between ₹625 and ₹650, according to recent reports.
Is Vedanta a good long-term investment?
Analysts remain positive due to strong cash flows, dividend yield, and the value-unlocking potential of the demerger.