Shares of Vedanta Power Ltd. experienced a significant upturn on Tuesday, advancing 4.76% to reach a day high of Rs 42.90. This surge comes after the company, one of four entities demerged from Vedanta Ltd., concluded its debut trading session lower on Monday.
Vedanta Power, alongside Vedanta Iron and Steel Ltd., Vedanta Aluminium Metal Ltd., and Vedanta Oil and Gas Ltd., commenced trading on the exchanges on June 15. These newly listed entities have been placed in the trade-for-trade (T2T) segment, a category that prohibits intraday trading and mandates physical delivery of shares for all transactions. This means investors can only sell shares from the next trading day after purchase.
Demerger Context and Investor Interest
The demerger, which received approval from the National Company Law Tribunal (NCLT) in December 2025, saw eligible Vedanta shareholders receive one share of each demerged entity for every Vedanta share held before the record date of May 1, 2026.
Ravi Singh, Chief Research Officer at Master Capital Services, highlighted the strong investor interest in the power and infrastructure sectors, driven by increasing electricity demand across India. According to Singh, the demerger allows the market to separately value Vedanta's power business, contributing to the positive sentiment surrounding the stock.
"Vedanta Power's listing has come at a time when the power and infrastructure space is witnessing strong investor interest due to rising electricity demand across India. After the Vedanta demerger, the market is now able to separately value the power business, which is one of the key reasons behind the positive sentiment around the stock," Singh stated.
Singh further noted the company's decent operational scale, suggesting long-term benefits from increased industrial activity and growing energy consumption in the country. However, he advised investors to monitor debt levels and the broader challenges facing the thermal power sector, which could impact future growth. Near-term volatility is anticipated as newly listed demerged companies typically undergo initial price discovery and profit booking.
Long-Term Growth Prospects for Power Sector
Nuvama Institutional Equities echoed this positive outlook, pointing to rising electricity consumption globally and within India as a driver for a long-term growth cycle in power generation. Projections indicate global power demand could double by 2050, while India's electricity demand might increase nearly fivefold. This growth is expected to be fueled by factors such as data centers, electric mobility, industrial expansion, new buildings, and increasing cooling requirements, with air-conditioning alone potentially contributing over 20% of India's incremental power demand.