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04 JUNE 2026 AL CIRCLE

Vedanta demerger update: Power arm emerges as group’s five-way split gains pace

EDITED BY : NILANJANA BANERJEE 2MINS READ

Vedanta Official Logo

This image has been sourced from https://www.vedantalimited.com/

As the market continues to track Vedanta’s demerger exercise, the company has taken another step toward its proposed business separation. Vedanta Limited announced on June 3, 2026, that its power subsidiary, Talwandi Sabo Power Limited, has officially been renamed Vedanta Power Limited, following approval from the Registrar of Companies (RoC) under the Ministry of Corporate Affairs.

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The name change came into effect on June 3, positioning the power business under a unified Vedanta brand ahead of its anticipated standalone listing.

Discover: The Gulf aluminium market risks, China impact, alumina supply, carbon costs, and logistics disruptions shaping pricing and trade in Gulf Disruption Roadmap 

Demerger roadmap enters a crucial phase

Vedanta’s demerger remains one of the most closely watched corporate restructuring exercises in India’s metals and mining sector. The company’s shares have been trading ex-demerger since April 30, 2026, after a special trading session aimed at determining the value of the residual listed entity.

Shareholders are entitled to receive shares in the newly created entities on a 1:1 basis. Following the restructuring, the Vedanta Group will comprise five standalone businesses:

  • Vedanta (Residual Entity)
  • Vedanta Aluminium
  • Vedanta Oil & Gas
  • Vedanta Power
  • Vedanta Iron & Steel

The rebranding of the power business is viewed as a significant milestone in preparing the company for its independent market presence.

Credit upgrade improves confidence

The development follows another positive update for the group. On May 29, Vedanta announced that rating agency ICRA had assigned its highest domestic credit rating to the company in more than a decade.

ICRA upgraded the long-term ratings of Vedanta Limited and Vedanta Aluminium Metal Limited (VAML) to AA+ with a Stable Outlook, while the rating for Talwandi Sabo Power Limited, now renamed as Vedanta Power Limited, was raised to AA- Stable from A+/Watch Developing.

According to Vedanta, the upgrade reflects stronger operational performance, improving financial metrics and enhanced structural efficiencies expected to emerge from the demerger process.

Securities carrying an AA+ rating are considered to have a high degree of safety in meeting financial obligations and are associated with very low credit risk, reinforcing investor confidence as the group moves closer to completing its restructuring plans.

Must read: Key industry individuals share their thoughts on the ALuminium LeaderSpeak 2026

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EDITED BY : NILANJANA BANERJEE 2MINS READ

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