Vedanta Group's long-awaited demerger has created substantial shareholder value, with the combined market capitalisation of Vedanta Ltd and its four newly listed demerged entities rising to around Rs 3.52 lakh crore as of Monday's trading session.

Before the restructuring, Vedanta Ltd had a standalone market capitalisation of approximately Rs 3.03 lakh crore on April 29, the final trading session before the stock turned ex-demerger. The difference of nearly Rs 49,000 crore highlights the market's positive response to the separation of the conglomerate into focused businesses.

The valuation gap was even larger immediately after listing, exceeding Rs 61,000 crore before some of the group's major stocks moderated their gains.

The largest contributor to the value creation has been Vedanta Aluminium Metal Ltd, which has emerged as the most valuable of the newly listed entities with a market capitalisation of about Rs 1.94 lakh crore. The aluminium business alone accounts for more than 60% of Vedanta Ltd's entire pre-demerger market value, reflecting its strategic importance within the group's portfolio.

The residual Vedanta Ltd, which continues to hold its stake in Hindustan Zinc along with other assets, was valued at approximately Rs 1.19 lakh crore as of Monday. Among the other demerged entities, Vedanta Power had a market capitalisation of around Rs 15,947 crore, while Vedanta Oil and Gas and Vedanta Iron and Steel were valued at approximately Rs 14,116 crore and Rs 8,235 crore, respectively.

The market's higher aggregate valuation of the individual businesses compared with the earlier conglomerate structure suggests investors are assigning greater value to the focused operational profiles and clearer business-specific growth prospects of the demerged entities.