Shares of Vedanta Power Ltd, a newly listed entity housing Vedanta's independent power generation assets, commenced trading on the National Stock Exchange (NSE) on Monday at Rs 41.80 apiece. Following its debut, the stock experienced an immediate downturn, falling 5 percent to Rs 39.71 as the session progressed. On the Bombay Stock Exchange (BSE), Vedanta Power shares opened at Rs 41.30 and touched a low of Rs 39.25 by 10:06 AM IST.
Vedanta Power, one of India's largest private sector power generators, was demerged from its parent company Vedanta. The company has secured its total capacity of 1,980 megawatts (MW) through a 25-year power purchase agreement (PPA) with PSPCL, ensuring long-term revenue visibility.
SBI Securities had previously assigned a fair value of Rs 44 to Vedanta Power. The firm highlighted Vedanta Power's significant role in India's power market and its potential to capitalize on evolving industry opportunities.
Rating agency ICRA recently issued a stable outlook for Talwandi Sabo Power (now Vedanta Power). This assessment was based on increased clarity regarding the allocation of assets and liabilities under the Vedanta group's demerger scheme, as well as the robust support framework among group entities. ICRA noted the company's two-part tariff structure, which includes a fixed capacity charge contingent on maintaining at least 80 percent plant availability annually, with fuel costs fully passed through. This structure effectively mitigates offtake risk and contributes to stable cash flow visibility.
The company's operational performance has also been strong, with average plant availability exceeding normative levels at 81 percent in FY25 and 83 percent in FY26, facilitating the recovery of fixed charges as per the PPA. Vedanta Power's operational and financial risk profile is further bolstered by the inclusion of additional power assets, including the 600 MW Jharsuguda Independent Power Plant (JIPP) in Odisha, the 600 MW (unit-1) Athena Chhattisgarh Power (ACP) plant, and the 1,000 MW Meenakshi power plant in Andhra Pradesh. Additionally, ACP’s unit-2 of 600 MW is anticipated to be commissioned by the end of the current financial year, further enhancing the company's scale, diversification, and cash flow stability.