Vedanta Demerger: May 1, 2026 Set as Record Date — What Every Shareholder Needs to Know

What happened — the board decision

Vedanta Limited's board has approved May 1, 2026 as both the effective date and the record date for its composite demerger scheme. This is the formal milestone that determines which shareholders are eligible to receive shares in the new entities. The announcement, made today, puts an end to months of speculation about exact timing and gives investors a hard deadline to act on.

The four new companies

Each of Vedanta's major verticals will become an independent, listed entity. Here's what the structure looks like:

What the 1:1 share ratio means for you

For every 1 share of Vedanta Limited held as of May 1, 2026, a shareholder will receive 1 equity share each in Vedanta Aluminium Metal Limited, Malco Energy Limited (Oil and Gas), and Vedanta Iron and Steel Limited. For Vedanta Power, 1 share of face value ₹10 will be issued per Vedanta share of ₹1 face value. The original Vedanta Ltd shares are not cancelled — investors retain those plus gain the new shares. The existing shareholding pattern is essentially replicated across all verticals.

The BALCO transfer — why it matters

Bharat Aluminium Company Limited (BALCO), which contributes ₹15,909 crore in turnover and represents 39% of Vedanta's net worth, will be transferred to the Aluminium entity ahead of the demerger. This makes Vedanta Aluminium Metal Limited a substantially larger and more valuable standalone business than it would have been without BALCO, giving it a strong foundation as an independent listed company.

Vedanta has long traded at a conglomerate discount — meaning the combined company was valued below the sum of its individual parts. By separating businesses, each entity can attract investors who prefer focused sector exposure, establish its own management strategy, and access capital markets independently. The demerger also enables each vertical to reduce debt at its own pace and pursue niche growth strategies without competing for group-level capital. With NCLT approval already secured and the record date now fixed, the restructuring is firmly in its final stretch.