Vedanta approves demerger; TSPL to list as Vedanta Power

Talwandi Sabo Power Limited (TSPL) will be demerged and listed as an independent entity, Vedanta Power Limited, after the Board of Vedanta Limited approved the final steps of its restructuring on April 20, 2026.

At a Board meeting in Mumbai, the company fixed May 1, 2026 as both the Effective Date of the Composite Scheme of Arrangement and the Record Date. Shareholders holding Vedanta shares on that date will receive one equity share of Vedanta Power Limited for every share held in Vedanta Limited, reflecting a 1:1 issuance ratio.

The new entity will house Vedanta’s Merchant Power Undertaking, creating a standalone power company with separate listing, governance, and capital-raising capability. The restructuring separates the power business from Vedanta’s diversified mining and resources portfolio.

TSPL, which will be renamed Vedanta Power Limited, operates the Talwandi Sabo thermal power plant in Punjab. The 1,980 MW coal-based facility supplies power on a merchant basis. Its transition into an independent listed entity is expected to provide clearer visibility into its financial and operational performance.

Alongside this, Vedanta will demerge three additional businesses into separate listed entities. Vedanta Aluminium Metal Limited (VAML) will house the Aluminium Undertaking along with the company’s stake in Bharat Aluminium Company (BALCO). Vedanta Oil and Gas Limited will be the renamed Malco Energy Limited, and Vedanta Iron and Steel Limited (VISL) will hold the Iron Ore Undertaking.

All four entities will follow the same 1:1 share entitlement and May 1, 2026 Record Date.

The featured photograph is for representation only.