Vedanta Demerger: Company shares important update for shareholders ahead of listing

Vedanta Demerger: Vedanta Ltd has announced a key development in its ongoing demerger process, with the company informing shareholders that its power business has been renamed ahead of the listing of the demerged entities.

In an exchange filing, Vedanta said the Registrar of Companies (RoC), under the Ministry of Corporate Affairs (MCA), has approved the change in the name of its power subsidiary from Talwandi Sabo Power Limited to Vedanta Power Limited with effect from June 3, 2026.

Accordingly, the company will operate under the name Vedanta Power Limited from June 3.

Name change comes as demerger process moves ahead

The development comes as Vedanta advances its demerger plan, under which its major business verticals are being separated into independent listed entities.

The company said the Hon’ble National Company Law Tribunal (NCLT), Mumbai Bench, approved the demerger scheme through orders dated December 16, 2025, and January 9, 2026.

Under the scheme, Vedanta's aluminium, merchant power, oil and gas, and iron ore businesses have been transferred into four separate companies on a going-concern basis.

Vedanta added that the scheme became effective from May 1, 2026, which is also being treated as the appointed date under the arrangement.

Vedanta Demerger: Listing update

As per the earlier guidance, the four demerged entities of Vedanta may get listed on NSE and BSE by mid-June, subject to regulatory approvals and exchange clearances.

In the process of listing, shares of demerged companies are first credited to shareholders’ demat accounts. These shares are frozen and cannot be traded until stock exchanges give final approval for listing.

Exchanges also verify compliance with disclosure norms, shareholding requirements and other listing conditions before allowing trading.

Typically, the listing process takes around 30 to 45 days from the record date. In several previous demerger cases, trading began within four to eight weeks after share allotment.

Credit ratings upgraded

Last week, Vedanta Group received its highest domestic credit rating in more than a decade after rating agency ICRA upgraded the long-term ratings of key group entities.

ICRA upgraded the long-term ratings of Vedanta Ltd and Vedanta Aluminium Metal Ltd to AA+ with a stable outlook. It also upgraded Vedanta Power Limited, formerly Talwandi Sabo Power Limited, to AA- Stable from A+/Watch Developing.

The rating agency reaffirmed the group's short-term rating at A1+, the highest category for short-term instruments.

According to Vedanta, the upgrades reflect stronger profitability, improved liquidity and greater financial flexibility. The agency also highlighted the expected benefits of the group's new demerger structure.

Record quarterly earnings

Vedanta reported record earnings for the March quarter of FY26.

Profit after tax surged 89 per cent year-on-year to Rs 9,352 crore, while revenue rose 29 per cent to Rs 51,524 crore.

EBITDA climbed 59 per cent to Rs 18,447 crore, with EBITDA margin improving to 44 per cent.

The company attributed the strong performance to higher production volumes, favourable commodity prices, improved premiums and foreign exchange gains.

Vedanta's return on capital employed improved to nearly 32 per cent during the quarter. Its net debt-to-EBITDA ratio strengthened to 0.95 times, the best level reported by the company in the last 14 quarters.