Vedanta Ltd.’s share price dropped by a little over 6% during the trading week from August 25 to August 29 as demerger plans faced setbacks from regulators.
Despite the latest issue in the demerger, Vedanta stock continued to deliver its dividend rewards to investors. Earlier this week, Vedanta paid a hefty dividend of Rs 16 per share. The latest recommendation on Vedanta is BUY for a target price of Rs 485. However, the highest average target price on Vedanta is above Rs 500 mark.
Vedanta Ltd Share Price:
After market hours on August 29, Vedanta stock closed at Rs 420.35 apiece on BSE, down by 0.92% with market cap of Rs 1,64,373.16 crore. However, on week-on-week performance, Vedanta shares plunged by 6.03%.
As per HDFC Sky, Vedanta Limited’s demerger is getting delayed as several regulatory authorities, including the government, have raised several objections to it. Amid the objections, the National Company Law Tribunal (NCLT) has deferred its hearing for the time being, which has caused the delay in the demerger. The objections and the deferring of the hearing have negatively impacted the company, causing volatility in its stock. The demerger plan is about Vedanta getting demerged into six separate listing entities.
Vedanta Demerger:
One of the major key developments in Vedanta is its plan for demerging its business into six listed entities. The decision behind the demerger is to unlock potential value. However, NCLT deferred hearing Vedanta’s demerger scheme. Recently, both Ministry of Petroleum and Natural Gas objected the proposal as they feel it could impact on recovering dues from Vedanta.
Also, Sebi flagged Vedanta for making changes to its demerger scheme after it received No-Objection Certificate (NoC) from regulators and stock exchanges BSE and NSE.
This prompted NCLT to defer hearing Vedanta’s proposed demerger plan on August 20th, and pushed the date to September 17.
On August 29th, in its regulatory filing, Vedanta said, “Pursuant to the order passed by the Hon’ble National Company Law Tribunal, Mumbai Bench dated August 13, 2025, which was published on its website at approximately 2:00 p.m., August 29, 2025 (“Order”), permission has been granted for the withdrawal of the Company Petition pertaining to the Scheme providing for capital reorganization involving the transfer of funds available in the General Reserve of the Company to its Retained Earnings (the “Scheme”). Accordingly, both the Company Petition and the Scheme stand withdrawn.”
Apart from this, Vedanta was also recently roped into accusation of hiding liabilities. As per Samco, in a separate development, the Supreme Court (SC) dismissed Vedanta Group’s plea seeking additional compensation for its Talwandi Sabo Power Project in Punjab.
Vedanta’s demerger plan including separating of Vedanta and metals, power, aluminium, and oil and gas businesses to unlock potential value. After the exercise, six independent verticals – Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power, Vedanta Steel and Ferrous Materials, Vedanta Base Metals and Vedanta Limited – will be created.
Under the demerger agreement, every eligible shareholder of Vedanta will get one share each in the five newly listed companies, against their 1 existing share in Vedanta.
More development in regards to Vedanta demerger will be keenly watched.
Vedanta Ltd Dividend:
Vedanta shares turned ex-dividend on August 27 for its upcoming interim dividend payout of Rs 16 per share. The company is set to pay overall dividends worth Rs 6,256 crore.
BUY Vedanta Stock?
As per analysts at Geojit, Vedanta’s financial performance was moderate in Q1FY26, characterised by commodity price volatility and changing global trade dynamics. Despite the macro headwinds, domestic demand was strong, helping support market premiums. Margins were strong across key businesses, driven by operational excellence and cost discipline. The company’s commitment to deleveraging and improving its capital efficiency, along with a robust business model, strong governance framework and transparent disclosures, positions Vedanta well to address challenges and capitalise on opportunities in the industry.
Hence, Geojit analysts added, “we upgrade our rating on the stock to BUY with a revised target price of Rs. 485, based on 4.6x FY27E EV/EBITDA.”
Also, the consensus recommendation from 15 analysts for Vedanta Ltd. is BUY, as per Trendlyne data. Of the total, 9 analysts have recommended STRONG BUY and 1 analyst suggested BUY. While 4 analysts have said to HOLD Vedanta and only 1 analyst recommended to Sell. The average target price on Vedanta is at Rs 503.87 apiece, which signals nearly 20% potential upside ahead.