Vedanta Shares Fall 4% Amid High Trading Volatility: Buy or Sell?

Vedanta Stock Today: Shares of mining major, Vedanta Ltd, fell nearly 4% during Thursday's intraday trade on BSE amid high trading volatility.

The shares of Anil Agarwal led conglomerate have declined nearly 7% in five trading days amid the announcement of extension of demerger deadline. Vedanta, on March 28, had notified its shareholders about extension of the deadline of its planned demerger.

The metals-to-mining conglomerate had extended the deadline of its planned merger from March 31 to September 30. In its BSE filing, Vedanta had cited pending approvals from the National Company Law Tribunal (NCLT) and other government authorities.

The conglomerate is under the process of a demerger from Vedanta Limited to Vedanta Aluminium Metal Limited, Talwandi Sabo Power Limited, Malco Energy Limited, and Vedanta Iron and Steel Limited.

With reference to the planned demerger, Vedanta Limited in its BSE filing stated, "Given that the conditions precedent in the Scheme, including approval of the National Company Law Tribunal, Mumbai Bench ("NCLT") and approvals from certain government authorities are in the process of being completed, the Board of the Company and the Resulting Companies, have decided to extend the timeline for fulfillment of the conditions precedent from March 31, 2025 to September 30, 2025."

Vedanta Share Price Movement

Vedanta share price touched its 52-week-high mark of Rs 527 per share on BSE on 16 December, 2024. Since, then the scrip is down nearly 16%. Vedanta shares were trading 3.59% lower at Rs 440.9 apiece on BSE on Thursday, with a market capitalisation of Rs 1,72,409.01 crore.

Vedanta stock also witnessed significant market volatility during the ongoing trading session on Thursday. According to BSE data, Vedanta shares witnessed a spurt in trading volume by 1.38 times today. Similarly the company shares trading volume spiked by 1.22 times on 1 April. The stock value has increased nearly 7.59% in one month, but has declined nearly 1% year to date (YTD).

Vedanta Stock Recommendations

According to Antique Stock Broking Limited, traders have been recommended to 'hold' Vedanta shares with a target price of Rs 491 apiece. According to Trendlyne data, Vedanta stock was in the 'Sell' zone based on the analysis of its price to earnings ratio on standalone basis.

Vedanta Demerger

All the shareholders, secured creditors and unsecured creditors of Vedanta unanimously supported the conglomerate's restructuring plan during a meeting on February 18, 2025. All the members supported the restructuring plan, said Vedanta in its stock exchange filing on February 20. The group also shared that the the restructuring plan has been approved internally and will be executed based on the further approvals by SEBI and other government organisations.

As per Vedanta's restructuring plan, the group will be divided into five entities post-demerger: Vedanta Aluminium which will be a leading aluminum producers across world; Vedanta Oil & Gas, a country's leading private-sector crude oil producer; Vedanta Power, which will be a major player in the power generation sector; Vedanta Iron and Steel, the entity will have specialisation in the ferrous products industry; Vedanta Ltd, which will continue as the parent entity, housing the silver and zinc businesses while incubating emerging ventures and other entities.

Disclaimer: The write-up is just for information purposes, and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on article mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.