Vedanta Share Price: Vedanta Shares Fall 64% On Demerger; What Does It Mean For Investors?

Vedanta share price: The shares of mining giant Vedanta appeared to plunge by over 64 in early trade on Thursday. However, the reality is that the shares were adjusted following the company's much-awaited demerger into four entities during a special pre-open session.

At this special session, as the shares began trading on an ex-demerger basis, at around 10:13 AM, Vedanta Shares were trading at Rs 277.95, down Rs 495.65 or 64.07 per cent on NSE.

What Does It Mean For Investors?

After the split, the share price does not include the value of the four newly separated businesses. This will not impact the investors, as this is one of the common actions of corporate restructurings. With this, the parent company's share price will be revalued, and shareholders will receive a proportionate share of the value of the separately listed companies.

This means that while the headline price may appear to have fallen significantly, the overall investment value remains the same. The shareholders will receive shares in the separated companies.

Special Session

To determine Vedanta's share price adjustment after the demerger, a special pre-opening session (SPOS) was held on the stock exchanges from 9:15 am to 9:45 am, with regular trading of the stock commencing from 10 am.