Vedanta Iron & Steel Hits 10% Upper Circuit, Extends Rally To 12th Session; Stock More Than Doubles Since Listing

Mumbai, July 2: Vedanta Iron & Steel share price remained in sharp focus on Thursday after hitting the 10% upper circuit at ₹42.65 on the NSE, extending gains for the 12th straight trading session.

The newly listed stock has emerged as one of the strongest performers on Dalal Street since its debut on June 15, soaring 113% from its listing price of ₹20 on the NSE. On the BSE, the company had listed at ₹22.25 per share.

The relentless rally has pushed the stock to fresh record highs, with buyers continuing to dominate trade amid limited selling pressure.

Investor enthusiasm remains strong  

The stock has gained 38% over a week versus Nifty 50 edging up 0.18% during the period. Source: NSE

Market participants attribute the rally to robust investor appetite for the standalone iron and steel business after Vedanta Ltd’s demerger. The restructuring has enabled investors to assign separate valuations to each of the conglomerate’s businesses, a move that analysts believe could unlock shareholder value over time. 

Sentiment also received a boost after Premji Invest-backed PI Opportunities AIF V LLP acquired nearly 4.84 crore shares in the company through a bulk deal shortly after listing. The fund purchased the shares at ₹21.02 apiece in a transaction valued at around ₹102 crore, signalling confidence from a marquee institutional investor. 

The buying interest has remained intact despite the stock already more than doubling in value since listing, indicating that investors continue to bet on the company’s long-term growth prospects. 

Part of Vedanta’s demerger exercise

Vedanta Iron & Steel is among the four businesses carved out of Vedanta Ltd as part of billionaire Anil Agarwal-led Vedanta Group’s long-awaited demerger plan. 

The restructuring aims to create focused, sector-specific businesses that can pursue independent growth strategies and unlock value for shareholders. Under the approved 1:1 share entitlement, existing Vedanta shareholders received one share each in the newly demerged entities. 

Since their listing, the group’s demerged companies have witnessed heightened investor interest as the market evaluates their standalone fundamentals. 

Other demerged entities also gain 

The rally was not confined to Vedanta Iron & Steel. 

Vedanta Oil & Gas rose more than 13% during Thursday’s session to hit a fresh lifetime high after ICRA assigned the company an ‘AA+’ rating with a Stable outlook. 

Vedanta Power also climbed around 8% to a record high, while Vedanta Aluminium Metal advanced nearly 4%, reflecting broad-based optimism across the newly listed Vedanta businesses. 

Analysts, however, caution that while the demerger has improved valuation visibility, the sharp appreciation in Vedanta Iron & Steel within a short span also suggests that the stock could remain volatile as price discovery continues. Investors may therefore keep an eye on earnings performance and execution over the coming quarters to assess whether the company’s fundamentals justify the steep rally. 

 Source

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