Vedanta Iron and Steel shares hit 5% upper circuit for fourth straight day, surge 20% since listing

Shares of Vedanta Iron & Steel extended their post-listing rally on Thursday, hitting the 5% upper circuit for the fourth straight session. The stock was trading around Rs 24.37, taking its market capitalisation to approximately Rs 9,521 crore. Since debuting on the bourses earlier this week, Vedanta Iron & Steel shares have surged over 20%, driven by strong investor appetite and a high-profile investment from Azim Premji-backed Premji Invest.

The rally gathered momentum after PI Opportunities AIF V LLP, an investment vehicle of Premji Invest, acquired nearly 4.84 crore shares worth Rs 101.68 crore through a bulk deal on Monday. The fund purchased the shares at Rs 21.02 apiece shortly after the company’s market debut, signalling confidence in the newly listed entity.

Vedanta Iron & Steel was listed on the NSE at Rs 20 per share, commanding a valuation of around Rs 7,821 crore. Following the recent surge, the company’s market capitalisation has climbed to nearly Rs 9,521 crore.

About Vedanta demerger

In April, Vedanta had announced that each eligible shareholder would receive one share in each of the four demerged entities — Vedanta Aluminium, Vedanta Power, Vedanta Oil & Gas and Vedanta Iron & Steel — for every Vedanta share held as of the record date, May 1.

What’s Driving the Rally?

Institutional backing: The stock received a major boost after Premji Invest picked up shares worth Rs 102 crore through a bulk deal, a move that has strengthened investor confidence in the newly listed company.

Demerger-led optimism: Investors are betting that Vedanta Iron & Steel, as a standalone entity, could benefit from greater operational focus and potentially command a higher valuation over time.

Upper-circuit momentum and limited float: The stock has hit its 5% upper circuit in every session since listing, triggering momentum-driven buying. A relatively low free float has further amplified demand-supply dynamics.

Also read: From Rs 2 crore to Rs 5,000 crore! How NSE IPO is a jackpot for SBI with 256,775% profitOverall, the rally appears to have been supported by strong institutional interest and positive sentiment around Vedanta’s demerger strategy, with investors focusing on the potential value-unlocking opportunities for the standalone business.

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