Vedanta Demerger Explained: What It Means for Shareholders and What You Should Do ?

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Vedanta Limited has officially completed a major corporate restructuring through a demerger of its core business segments into separate listed entities.

What Has Happened?
The National Company Law Tribunal (NCLT) approved Vedanta’s composite scheme, and the demerger became effective on May 1, 2026.
Under this restructuring:
Vedanta Limited (the parent entity) has carved out four key business divisions into separate companies:

⦁    Vedanta Aluminum Metal

⦁    Vedanta Power

⦁    Vedanta Oil & Gas

⦁    Vedanta Iron & Steel

Each business now operates independently, allowing clearer valuation and focused growth.

Share Entitlement: What Do Shareholders Get?
For every 1 share of Vedanta Limited, shareholders receive 1 share in each of the four demerged companies.

Cost of Acquisition Split 
The company has provided a cost apportionment ratio, which investors must use to calculate capital gains when selling any of these shares. Here’s how your original investment in Vedanta Limited should be split:

Sl.No	Name of Entity	% of Total Cost of Acquisition of Ordinary Shares
1.	Vedanta Limited	52.34%
2.	Vedanta Oil & Gas	21.49%
3.	Vedanta Power	12.23%
4.	Vedanta Aluminium Metal	7.15%
5.	Vedanta Iron & Steel	6.79%

For example:

Imagine you have invested ₹10,000 in Vedanta Limited by the ex-date. 

To calculate each buy price, use the below formula :

                                New Price = Original Price × Allocation %

Then your allocation will be : 

₹5,234 → Vedanta Ltd

₹2,149 → Vedanta Oil & Gas 

₹1,223 → Vedanta Power 

₹715 → Vedanta Aluminium Metal 

₹679 → Vedanta Iron & Steel 

What Should You Do Now?
After the demerger, both Vedanta Limited and all the newly created companies will automatically appear in your portfolio in Flip for retail clients & for NRE/NRO accounts after declaration. However, the average purchase price shown for these holdings may be incorrect, since the original cost of Vedanta Limited is not automatically split across the new entities. You need to manually update the new average rates via MyGeojit.

How to update the average rate in MyGeojit ?  
⦁    Log in to MyGeojit

⦁    Go to Reports > Trade Book > Manual Transaction

⦁    Now make a sell entry - Selling old Vedanta shares (pre-demerger) at original cost

⦁    Next buy Vedanta Limited (VEDL) shares at the new average rate calculated as below

⦁    For the remaining shares, modify the rate.

For example :

If you held 100 shares of Vedanta Ltd, assume original purchase price as ₹1,000 per share. So the total investment will be ₹1,00,000.

Step 1: Sale Entry (Vedanta Ltd)

Sell: 100 shares of Vedanta Ltd (pre-demerger) @ ₹1,000 ( This resets your original position).

Step 2: Buy Entries 

Now create a buy transaction based on the cost split for VEDL:

New Price = Original Price × Allocation %

New Price = 1000 × 52.34/100 = ₹523.40

Buy: 100 Vedanta Ltd @ ₹523.40

Step 3. The remaining shares will be displayed in the portfolio. You can modify the rates by :

⦁    Log in to MyGeojit

⦁    Go to Reports > Trade Book > Manual Transaction

⦁    The remaining shares will be displayed here.

⦁    Hover over the scrip name so that an option button will be displayed.

⦁    Click on it to find two options - Edit and Delete

⦁    Click on the 'edit' button. You can already see a rate here which we have updated the open price        of the stock on listing day.

⦁    Calculate the new average rate using the above formula. Enter the new rate. 

⦁    Click Submit. 

As per the above scenario the new rates will be

Buy: 100 Vedanta Oil & Gas @ ₹214.90

Buy: 100 Vedanta Power @ ₹122.30

Buy: 100 Vedanta Aluminium @ ₹71.50

Buy: 100 Vedanta Iron & Steel @ ₹67.90

Please Note : The above entries, which reflect an incorrect average rate, will automatically appear for clients whose DP is with Geojit. These users need to recalculate the correct price and update the entries accordingly. Clients whose DP is not with Geojit must manually add both the sell and buy entries for all their shares.