Vedanta Limited remained in focus after MSCI Inc. announced that the residual Vedanta entity will be removed from its Global Standard Indexes with effect from June 22, 2026, following the completion of the company’s multi-entity demerger.
The decision follows a reduction in the market capitalisation of the residual company after the restructuring.
MSCI Removes Residual Vedanta from Global Standard Indexes
MSCI confirmed that the residual Vedanta entity will be excluded from its:
- MSCI Global Standard Indexes
- MSCI Large Cap Indexes
Effective Date: June 22, 2026
The removal comes after the demerger reduced the size of the parent company, causing it to fall below the eligibility criteria for inclusion in the Global Standard Indexes.
Vedanta Demerger Completed
The Anil Agarwal-led group has completed the restructuring of Vedanta into 5 separately listed companies.
The final phase concluded after the following companies commenced trading on both the BSE and NSE:
- Vedanta Aluminium Limited
- Vedanta Power Limited
- Vedanta Oil & Gas Limited
- Vedanta Iron & Steel Limited
Trading began following a special pre-open session.
Share Allocation Under the Demerger
Eligible shareholders received:
1 share in each of the 4 newly created companies for every 1 Vedanta share held
Record Date: May 1, 2026
The restructuring is intended to create focused businesses operating independently across various natural resource segments.
Newly Listed Companies
Among the demerged entities:
| Company | Listing Price |
|---|---|
| Vedanta Aluminium | ₹527 per share |
| Vedanta Power | ₹41.30 per share |
| Vedanta Oil & Gas | ₹39 per share |
| Vedanta Iron & Steel | ₹22 per share |
Notably, Vedanta Aluminium debuted with an estimated market capitalisation of approximately ₹2.06 lakh crore, exceeding that of the parent company.
Vedanta Share Price Performance
As of June 17, 2026 (11:11 AM):
- Share Price: ₹303.60
- Change: +₹3.60 (+1.20%)
- Market Capitalisation: ₹1,18,719.38 crore
Why MSCI Removal Matters
Removal from MSCI Global Standard Indexes may result in:
- Portfolio adjustments by passive global funds tracking MSCI indices.
- Temporary changes in institutional investment flows.
- Lower index-linked ownership in the residual Vedanta entity.
However, the long-term impact will also depend on the performance and market capitalisation of the newly listed companies, which could become eligible for index inclusion independently if they meet MSCI’s criteria.
Conclusion
MSCI’s decision to remove the residual Vedanta entity from its Global Standard Indexes follows the successful completion of Vedanta’s demerger into five listed companies. While the restructuring has reduced the parent company’s market capitalisation, it has created independent businesses across aluminium, power, oil & gas, and iron & steel, allowing investors to participate directly in each business segment. Market participants will now monitor the trading performance and future index eligibility of the newly listed entities.
Disclaimer:
This article is intended solely for educational and informational purposes. The securities or companies mentioned are provided as examples and should not be considered as recommendations. Nothing contained herein constitutes personal financial advice or investment recommendations. Readers are advised to conduct their own research and consult a qualified financial advisor before making any investment decisions.
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