Vedanta Limited Approves Demerger and Listing of Vedanta Power Limited

The Board of Directors of Vedanta Limited approved final implementation steps for its corporate demerger on April 20, 2026. The company designated May 1, 2026, as both the Effective Date of the Composite Scheme of Arrangement and the official Record Date. This finalization follows the January 9, 2026, approval by the National Company Law Tribunal (NCLT), Mumbai Bench, which green-lit the scheme after it received support from over 99% of secured and unsecured creditors in late 2025. The restructuring establishes Vedanta Power Limited as an independent listed entity.

Corporate Restructuring and Business Separation

The restructuring involves the separation of the “Merchant Power Undertaking” from Vedanta Limited’s primary mining and natural resource assets. Under this arrangement, the power business assets are transferred into Vedanta Power Limited, the corporate entity previously known as Talwandi Sabo Power Limited (TSPL).

Per the rationale filed with the tribunal, the company stated the demerger is intended to create sector-focused independent businesses with distinct governance structures and the capability to raise capital independently. The Chairman of Vedanta described the restructuring as part of a “3D” strategy focused on demerger, diversification, and deleveraging to align each vertical with specific investment cycles and end markets.

Shareholder Allotment and Equity Logistics

Shareholders registered in the company’s records as of the May 1, 2026, record date are eligible to receive shares in the demerged entities. The allotment follows a 1:1 ratio, providing one fully paid equity share in each of the four new companies for every one share held in Vedanta Limited.

To qualify for this allotment, investors must have shares reflected in their dematerialized accounts by the record date. April 30, 2026, serves as the ex-date for the demerger. Because May 1, 2026, is a market holiday for Maharashtra Day and the Indian stock exchanges follow a T+1 settlement cycle, April 29, 2026, is the last effective date for purchasing shares to ensure eligibility for the spin-off.

Technical and Operational Specifications: Talwandi Sabo Plant

The Merchant Power Undertaking, centered on the Talwandi Sabo Power Limited facility, consists of the following technical and operational specifications:

• Generation Capacity: 1,980 MW, comprised of three units of 660 MW each.
• Location: Banawala village, Mansa district, Punjab.
• Operational Status: Functions as a coal-based merchant power facility.
• Contractual Status: Operates under a long-term Power Purchase Agreement (PPA) with Punjab State Power Corporation Limited (PSPCL).

Scope of the Restructuring: Demerged Entities

In addition to the power business, the restructuring creates three other specialized independent entities:

1. Vedanta Aluminium Metal Limited (VAML): This entity manages the aluminium undertaking and the company’s 51% stake in Bharat Aluminium Company (BALCO).
2. Vedanta Oil and Gas Limited: The entity previously managed as Malco Energy Limited (MEL), housing upstream and oil assets.
3. Vedanta Iron and Steel Limited (VISL): This entity is responsible for the group’s iron ore undertaking and ferrous portfolio.

The residual Vedanta Limited will continue to hold the interest in Hindustan Zinc. It will also act as an incubator for other verticals, including Vedanta Zinc International (VZI), Fujairah Gold, and the Display & Electronics business.

Listing Timeline and Completion Process

The new independent entities will be listed on the BSE and the NSE. Following the record date of May 1, 2026, the listing process for these companies is expected to be completed in approximately six weeks.