Vedanta Iron & Steel Surges and Freezes for Fourth Straight Day, Hitting Upper Circuit

Mumbai, June 18: Vedanta Iron & Steel share price continued stellar post-listing run on Thursday, hitting the 5% upper circuit for the fourth consecutive trading session as investors piled into the newly listed demerged entity. The stock rose to ₹24.37, taking its market capitalisation to nearly ₹9,529.6 crore and extending gains to more than 20% since its market debut earlier this week. 

The rally stands out amid mixed performance across Vedanta Group’s newly listed companies, with investors showing a clear preference for the iron and steel business following the conglomerate’s landmark demerger. While some of the group’s other demerged entities have witnessed profit booking and lower-circuit moves, Vedanta Iron & Steel has consistently attracted strong buying interest. 

Premji Invest Bet Boosts Sentiment 

The stock has been rising and freezing ever since its debut on the bourses. Source: NSE 

One of the key triggers behind the stock’s sharp rise has been the entry of Premji Invest-backed PI Opportunities AIF V LLP, which acquired shares worth about ₹102 crore shortly after the company’s listing. The investment by a fund associated with billionaire Azim Premji has been viewed by the market as a strong vote of confidence in the standalone prospects of the iron and steel business. 

Market participants say the investment has helped attract further institutional and retail interest, contributing to the stock repeatedly hitting its upper circuit limit since listing. 

A Winner from Vedanta’s Mega Demerger 

Vedanta Iron & Steel is one of four companies carved out under billionaire Anil Agarwal-led Vedanta’s sweeping restructuring exercise, which split the conglomerate into multiple sector-focused businesses. The demerger is aimed at unlocking shareholder value by allowing investors to separately value businesses spanning aluminium, oil and gas, power, and iron and steel. 

The restructuring has already created significant value for shareholders. Market estimates suggest the listing of the demerged entities unlocked tens of thousands of crores in market value, as investors reassessed the worth of individual businesses outside the conglomerate structure. 

Why Investors Are Bullish 

Apart from the demerger-driven rerating, investors are betting on long-term growth in India’s steel sector, supported by infrastructure spending, manufacturing expansion and rising domestic demand. Analysts say the standalone structure could also provide greater strategic flexibility and operational focus for the iron and steel business. 

The stock’s strong debut contrasts with the performance of some other newly listed Vedanta entities, reinforcing the view that investors are selectively backing businesses with clearer growth visibility and favourable sector dynamics. 

Outlook 

With four consecutive upper circuits and gains exceeding 20% since listing, Vedanta Iron & Steel has emerged as one of the biggest winners from Vedanta’s demerger exercise. Investors will now watch whether the stock can sustain its momentum once initial listing enthusiasm subsides and the market begins to focus more closely on earnings, capacity expansion plans and growth prospects as a standalone company. 

Source

• https://www.nseindia.com/get-quote/equity/VISL/Vedanta-Iron-and-Steel-Limited