Corporate Action Update – Vedanta Limited Demerger

Vedanta Limited has announced a demerger of its existing business into 5 independent business entities, with a record date of 1st May, 2026.

Here’s what’s happening and what it means for you:

• Demerger Structure: Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power, Vedanta Iron & Steel, along with the existing Vedanta Ltd

• Demerger Ratio: 1:1

• Effective Date: May 1, 2026

For every 1 stock of Vedanta Limited you hold, you will:

• Continue to hold 1 stock of Vedanta Limited
  
• Receive 1 stock each in the newly formed entities
  

The price will be split between the entities as per the company-decided allocation.

Impact on Equity Holdings

If you hold stocks of Vedanta, you will receive stocks of the newly demerged entities in a 1:1 ratio. You will continue to hold the same number of Vedanta Limited shares. However, the existing share price will be split across all entities based on the company-decided percentage.

Example

Before Demerger:

• You hold: 100 shares of Vedanta Limited
• Average Buy Price: ₹400

After the Demerger (illustrative split):

• You continue to hold: 100 shares of Vedanta Limited at an adjusted average price (to ensure it does not reflect a loss)

• You receive: 100 shares each of Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power, and Vedanta Iron & Steel

• On the ex-date, you may observe a temporary dip in portfolio value and unrealized PnL due to the price adjustment. It will be corrected once the new stocks are credit in your demat and Neo account

• The new stocks will be credited to your demat account within ~45 days

Note: Final price allocation will be determined by the company.

Impact on Pledge margin

If you have pledged your Vedanta stocks for margin:

• Margin received from pledge stocks of Vedanta reduces to 50% on 27th April, 2026. The margin subsequently reduces to NIL (0%) on 28th April, 2026

• Demerged shares will be credited to your demat account as unpledged shares If you are utilizing the collateral margin, please maintain sufficient margins to avoid shortfall and ensure that your positions are not liquidated.

Impact on Margin Trading Facility (MTF)

If you’ve purchased Vedanta stocks using MTF:

• The margin requirement for your open MTF position in Vedanta will increase to 50% on 27th April, 2026. The margin requirement will subsequently increase to 100% on 28th April, 2026.
  
• All existing MTF Positions in Vedanta will be converted to delivery on 29th April 2026 EOD
  
• The additional stocks for the demerged entities will be equal to your current holdings (1:1 for each entity) and will be received as Non-MTF shares
  
• If you sell Vedanta shares post demerger, Profit/loss will be adjusted based on revised buy price
  

What You Should Do

• Maintain sufficient margin to avoid shortfall

Impact on Derivatives (Futures & Options)

Due to the demerger:

• All existing F&O contracts of Vedanta with expiries 26 May, 30 June, and 28 July will expire early on April 29
  
• Physical settlement will apply for open positions
  
• Settlement will be based on the closing price on April 29
  
• New contracts will be introduced post demerger
  

Futures Example

Options Example

What You Need to Do

For Equity Investors

✓ No action required – Shares of new entities will be auto-credited in 1:1 ratio within ~45 days

For MTF Investors

Ensure sufficient funds/margin is available to avoid shortfall. All open positions convert to delivery on 29th April 2026 EOD

For F&O Traders

• Review all positions immediately – Contracts expire early on April 29
  
• Square off positions before April 29 to avoid physical delivery
  
• Ensure sufficient funds/margin if opting for settlement