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How are Vedanta Group’s 4 newly listed shares trading? Decoding the volatile multi-asset price discovery – Market News

How are Vedanta Group’s 4 newly listed shares trading? Decoding the volatile multi-asset price discovery – Market News

Just a day after the listing of the 4 demerged entities of the Vedanta Group companies, the market focus is on how the group’s newly listed shares are trading. While some of the newly listed entities saw buying interest, others came under significant selling pressure as investors reassessed the prospects of each standalone company. 

This is the beginning of a new phase where every business will now be valued independently rather than as part of a diversified conglomerate. Let’s take a look at how the shares are trading –

Selling pressure emerges in Aluminium and Oil & Gas

Among the newly listed entities, Vedanta Aluminium Metal and Vedanta Oil & Gas faced most acute selling pressure.

Vedanta Aluminium Metal hit 5% lower circuit and slipped to Rs 471.11 for the second straight session. Vedanta Oil & Gas also slumped to 5% lower circuit for the second day. 

The decline comes after both companies made their stock market debut a day earlier.

Vedanta Iron & Steel attracts buyers

In contrast, Vedanta Iron & Steel emerged as the strongest performer among the demerged entities.

The stock hit its 5% upper circuit and climbed to Rs 22.11 in the intraday trade, making it the top gainer within the newly created Vedanta businesses. Interestingly the stock had hit a 5% lower circuit yesterday. 

Vedanta Iron & Steel saw buying interest on its second day of trading. A bulk deal on the NSE showed that PI Opportunities AIF V LLP acquired around 4.83 lakh shares of the company at an average price of Rs 21.02 per share.

Vedanta Power remains in positive territory

Vedanta Power also managed to stay in the green early but lost momentum in later trade.

The stock gained around 2% and traded near Rs 42.98 in the early hours, before trading slightly lower in the intraday trade.

What about Vedanta share price?

The parent company, Vedanta, also witnessed some pressure during trading.

The share price of Vedanta declined around 2% in intraday trade as investors continued to assess the value of the residual company after the separation of its major business verticals.

The residual entity now houses assets such as Hindustan Zinc, zinc international operations, copper, ferrochrome and other strategic mineral businesses.

How did the new companies debut?

The four demerged businesses started trading on the exchanges on June 15, marking the final stage of Vedanta’s restructuring exercise.

Company Listing Price (Rs) Latest Trend
Vedanta Aluminium Metal 522 Lower Circuit (-5%)
Vedanta Oil & Gas 38 Lower Circuit (-5%)
Vedanta Power 41.8 Trading Higher
Vedanta Iron & Steel 20 Upper Circuit (+5%)

Why is the market watching out for

The first few trading sessions are important because they help establish separate market valuations for each business.

Earlier, investors could only invest in Vedanta as a combined entity. Now, aluminium, oil & gas, power and iron & steel businesses are trading independently, allowing the market to decide which segments deserve higher valuations and which may face near-term challenges.The mixed performance seen so far suggests that investors are taking a selective approach, with each Vedanta business now beginning its own journey on the stock exchanges.

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