Vedanta Demerger Stocks: Iron & Steel Stock Hits Upper Circuit, Aluminium and Oil & Gas Stocks Freeze in Lower Circuit Even As Power Stock Swings and Soars

Mumbai, June 16: Shares of Vedanta Group’s demerged entities witnessed divergent moves on Tuesday, the second day of trading after their stock market debut, as investors continued to assess the growth prospects and valuations of the newly separated businesses. 

Vedanta Iron & Steel emerged as the standout performer, extending gains and attracting strong investor interest, while Vedanta Aluminium Metal and Vedanta Oil & Gas remained under selling pressure. The mixed performance underscores the market’s selective approach towards the conglomerate’s newly created pure-play companies following one of India’s largest corporate restructuring exercises. 

Iron & Steel Leads the Pack 

Among the four demerged entities, Vedanta Iron & Steel continued to outperform its peers, building on the strength seen during its market debut. 

Vedanta Iron & Steel froze after hitting the 5% upper circuit on the second day of its trade. Source: NSE 

The stock gained sharply as investors bet on India’s long-term infrastructure and manufacturing growth story. Vedanta Iron & Steel share price rose 5% to Rs 22.11, hitting the upper circuit. 

Market participants have also been encouraged by the company’s expansion ambitions and exposure to the domestic steel cycle, which is expected to benefit from continued government spending on infrastructure projects. 

The strong performance contrasts with the broader weakness seen in some of the group’s other newly listed entities and suggests investors are willing to assign a premium to businesses with clearer growth visibility. 

Aluminium and Oil & Gas Hit Lower Circuits 

Vedanta Aluminium Metal and Vedanta Oil & Gas remained under pressure, with both stocks hitting their lower circuit limits during trading. Vedanta Aluminium Metal share price fell 5% to Rs 471.11 and Vedanta Oil & Gas share price declined the same to Rs 34.30. 

The weakness comes despite Vedanta Aluminium being the largest and most valuable company among the demerged entities by market capitalisation. Analysts attributed the selling largely to profit booking and portfolio rebalancing by shareholders who received shares under the demerger scheme. Investors may also be reassessing valuations after the initial price discovery process. 

Vedanta Oil & Gas, meanwhile, continued to face pressure amid concerns over commodity price volatility and investor preference for businesses with more predictable earnings streams. 

Power Stock Show Relative Resilience 

Vedanta Power was comparatively resilient but saw sharp swings. It started out with a fall of 4.6% before recovering then falling again and then recovering again.  

Vedanta Power soared and threatened to hit the upper circuit on second day of trade.

Source

•  NSE