Post-demerger, Vedanta Aluminium & Oil & Gas hit lower circuit, while Iron & Steel shares surged impressively.
This demerger is part of a major corporate restructuring in India's metals and mining sector. Its objective is to give different businesses separate identities for their proper valuation.
Shortly after listing, the shares of two companies hit the lower circuit. Vedanta Aluminium Metal's share was listed at the highest price of Rs 522.
However, by 10:10 AM, it hit a 5 percent lower circuit on the BSE, falling to Rs 500.65.
Similarly, Vedanta Oil & Gas Limited's share was listed at Rs 38 on the NSE, but it soon hit a 5 percent lower circuit, dropping to Rs 36.10.
On the other hand, the shares of Vedanta Iron & Steel Limited pleased investors. The stock was listed at Rs 20 and surged by 5.30 percent to reach Rs 21.06 in early trade.
Vedanta Power Limited's shares also saw a rise. It was listed at Rs 41.8 and was seen trading at Rs 42.79, up by about 2.37 percent.
Currently, the shares of all four companies have been placed in the 'Trade-to-Trade' (T2T) segment. This means that physical delivery of these shares will be mandatory for the first 10 days.
Due to this rule, investors will not be able to do intraday trading in these stocks. This step is usually taken to control excessive volatility in shares during the initial days.
The record date for the demerger was May 1, and investors received 1 share of each new company for every 1 share of Vedanta Limited held.
With this restructuring, businesses like Aluminium, Power, Oil & Gas, and Iron & Steel can now be valued independently, providing investors with better opportunities in each sector.
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