Vedanta Group shares
On Thursday, there was panic among investors after seeing the shares of Anil Agarwal’s flagship company Vedanta Limited fall by about 65%. At first glance this seems like a big decline, but the real story is different. Due to the demerger of the company, the share price has been adjusted, due to which this decline is visible. Let us understand what is the real reason behind this decline and what it means for investors.
The company’s shares had closed at Rs 773.60 on Wednesday, but on Thursday it opened at Rs 289.50 and reached Rs 271.5 intraday. However, this fall is not an actual loss, but a price adjustment due to the demerger of the company. Actually, this company led by Anil Agarwal has decided to divide its business into different parts. Now the value of four new units Vedanta Aluminium, Vedanta Power, Vedanta Oil & Gas and Vedanta Steel & Iron Ore has been separated from Vedanta’s shares. This is the reason why the share price suddenly appears low.
Share down due to demerger
Under this process, the company had fixed May 1 as the record date, but due to the market being closed due to Maharashtra Day, April 30 was considered as the effective record date. On the same day, the shares were traded ex-demerger, that is, the value of new companies was not included in it. After the demerger, these four businesses will be listed as separate companies.
Experts believe that investors can benefit from this because the value of every business will be revealed in different ways. According to SAMCO Securities analysts, when businesses like aluminium, oil and gas will be listed separately, their true value will be visible in the market. This process of demerger was to start in 2023, but it was delayed due to various reasons, including government objections.
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