Vedanta units slide 5% on demerger timeline doubts

The broader metals and mining sector gave up early gains as the Vedanta selloff weighed on sentiment. Hindalco, JSW Steel and Tata Steel all edged lower, paring a positive open for the Nifty 50. The group's demerger roadmap has been a key catalyst for the stock, and any delay could affect valuations across its subsidiaries.

Vedanta's debt position adds another layer of scrutiny. The parent reported a net debt of about $7.4 billion in the last quarter, and a quicker demerger is seen as a pathway to unlock cash from the units. Market participants have flagged that a prolonged timeline keeps the debt overhang alive and limits the potential for asset monetisation.

The company has not commented on the latest declines. The demerger scheme, first announced in September 2023, has already missed several self-imposed deadlines. Vedanta's next quarterly earnings call is expected in the coming weeks, where analysts will press for an update on the restructuring.