Vedanta Demerger: Fair value of Malco, Talwandi Sabo & other Vedanta companies — Explained

Vedanta Demerger: Anil Agrawal-led Vedanta Ltd, which traded ex-date for the demerger of four new companies last month, has disclosed the cost of acquisition of equity shares for shareholders in the existing company and the resulting companies. The disclosure is meant to help investors understand the fair value of Vedanta and the four listing-bound entities.

In an exchange filing, Vedanta said more than half of its value before the demerger was made up of the existing company, which largely consists of its zinc and silver business. The remaining four entities, which are yet to be listed, contributed less than half of the company’s value before the demerger.

Vedanta shares had settled at Rs 773.60 on April 29, ahead of the ex-date on April 30. The record date for the demerger was fixed as May 1, 2025. However, the stock market was shut on May 1 on account of Maharashtra Day. As a result, the stock traded ex-spin off on April 30 itself.

Based on the numbers given in the release, existing Vedanta contributed 52.34 per cent to its value, amounting to be Rs 404.90 per share. Vedanta shares are nearly 24 per cent undervalued from its ‘fair’ estimates. It is followed by Malco Energy, which contributed nearly 21.49 per cent value, which comes out to be Rs 166.25 per share.

Talwandi Sabo Power’s contribution stood at 12.23 per cent, which comes out to Rs 94.6 per share. Vedanta Aluminium Metal and Vedanta Iron and Steel contributed 7.15 per cent and 6.79 per cent respectively. These shares hold a contributing value of Rs 55.3 and Rs 52.5 in the same order.
 

However, actual values of all the four listing bound entities may differ as the exchanges shall hold a special trading session to determine their fair value. One should note that the listing date of these companies have not been announced yet but one can expect their debut in June-July 2026.

BP Equities has retained a buy call on Vedanta after its demerger and Q4FY26 earnings, saying the continuing operations now form a more focused zinc-silver-copper business with improving profitability visibility. The brokerage said integrated operations, including captive mines and smelters, should help higher metal realisations flow into earnings.

It expects silver, zinc and copper prices to stay supportive on demand from electrification, renewable energy, infrastructure and EVs, though growth may moderate in FY27-FY29. BP Equities cited a lower conglomerate discount and strong internal cash generation, and retained its target price of Rs 387.

For the quarter ended March 31, 2026, Vedanta reported net profit of Rs 9,352 crore, up 89 per cent year-on-year, on revenue of Rs 51,524 crore, up 29 per cent. Q4FY26 Ebitda rose 59 per cent to Rs 18,447 crore and margins improved 915 basis points to 44 per cent.

India contributes 65 per cent of revenue, while the rest comes from international operations and exports. Its core business remains its 61 per cent stake in Hindustan Zinc, while brokerages await clarity on the stock after the spin-off.