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Vedanta demerger lifts combined market cap 67% to ₹3.5 lakh cr
Vedanta's six demerged entities now command a combined ₹3.5 lakh crore market cap, up 67% from pre-split. The revaluation reflects sector-specific multiples, but concentration in Hindustan Zinc and liquidity in smaller units introduce risk.
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The combined market capitalisation of Vedanta Ltd's six demerged entities has jumped 67% from the pre-restructuring level, reaching about ₹3.5 lakh crore. The move splits the conglomerate into standalone businesses – zinc, oil and gas, aluminium, copper, iron ore, and a residual Vedanta Ltd – each now trading at sector-specific multiples instead of the single discount applied to the old group.
Vedanta announced the demerger in 2023. Shareholders and regulators approved the plan, and the new shares started trading in early 2025. The market's reaction was immediate. Hindustan Zinc, the largest piece, commands roughly 60% of the combined market cap, reflecting its strong margins and low production costs. The oil and gas unit trades at about 7 times EBITDA, aluminium near 5 times. Before the split, the entire group traded at 4 to 6 times earnings, weighed down by governance concerns and cross-holding complexity.
The 67% gain is a sum-of-parts revaluation. Each standalone unit now gets its own multiple. That arithmetic works as long as earnings hold up. The risk concentration lies in Hindustan Zinc. Any shift in zinc prices – driven by Chinese demand or global smelter closures – hits the overall valuation disproportionately. The copper and aluminium units are more cyclical and carry higher operational leverage.