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Vedanta Limited received approval from the Mumbai Bench of the NCLT to move ahead with its planned demerger into four independent businesses on December 16, 2025.

Citi has maintained a Buy rating on the stock, pointing to potential upside. Could this demerger be the catalyst for unlocking greater shareholder value?

While approvals for Vedanta Power are still pending, with the next hearing on January 7, 2026, the company aims to complete the restructuring by March 2026, creating four sector-focused, standalone entities that could reshape the group’s performance and returns for investors.

Vedanta Limited is currently trading at Rs 576.80, up 1.15 per cent from the previous close of Rs 570. The stock has seen an intraday high of Rs 576.90 and a low of Rs 564.15.

It has a market capitalisation of Rs 2,24,886.42 crore and is part of the BSE 100 index under the diversified metals sector. The 52-week high and low are Rs 579.95 and Rs 362.20, respectively.

According to Citi, Vedanta’s businesses currently trade at around 5x EV/EBITDA on spot, and the demerger could help reduce the conglomerate discount.

Citi has maintained a Buy rating on Vedanta with a target price of Rs 585, highlighting factors such as comfortable parent leverage, potential aluminium LME upside, volume growth, likely lower costs, and the benefits of the demerger.

Under the approved scheme, shareholders of Vedanta Limited will receive equity shares in each of the four resulting listed entities in proportion to their current holdings, maintaining shareholding continuity.

Following the demerger, the Vedanta group will consist of five listed companies: Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Iron & Steel, Vedanta Power, and Vedanta Limited.

Over different time periods, Vedanta has delivered gains of 8.63 per cent in one week, 12.61 per cent in one month, 25.98 per cent in six months, 15.77 per cent in one year, 120.63 per cent in two years, and 290.19 per cent over five years.

The company’s market capitalisation stands at Rs 2,24,827.76 crore, and it is part of the BSE 100 index under the Diversified Metals sector.

Vedanta is among the highest dividend-paying companies, offering an annual dividend yield of 8.98 per cent. Recent dividend payouts include Rs 16 per share on 26 August 2025, Rs 7 per share on 24 June 2025, Rs 8.5 per share on 24 December 2024, Rs 20 per share on 10 September 2024, and Rs 4 per share on 2 August 2024.

The company also has a history of issuing bonuses, including a 1:1 bonus share issue on 8 August 2008.