7 months ago
Vedanta demerger approved by NCLT
Vedanta Limited, a big mining company, has been given permission to split off its power business into a separate company called Talwandi Sabo Power Limited (TSPL).
This decision was made by a court called the National Company Law Tribunal (NCLT) on January 9, 2026.
The split was supported by almost all the people who lend money to the company.
After the split, TSPL will have more money, and Vedanta will have less, but the people who own shares in Vedanta will still own the same amount in the new company.
All the workers in the power business will also keep their jobs with the new company.
NCLT approved the demerger of Vedanta's Merchant Power Undertaking into Talwandi Sabo Power Limited (TSPL).
The demerger was supported by 100% of secured creditors and 99.99% of unsecured creditors.
TSPL's net worth is projected to increase from Rs 3,606 crore to Rs 8,207 crore post-demerger.
Vedanta's net worth will decrease from Rs 46,533 crore to Rs 43,230 crore after the transfer of assets.
All employees in the Merchant Power Undertaking will transfer to TSPL with no interruption in service.
- Who
- Vedanta Limited and its subsidiary Talwandi Sabo Power Limited (TSPL)
- What
- Demerger of the Merchant Power Undertaking
- Where
- Mumbai Bench of the National Company Law Tribunal (NCLT)
- When
- Approved on January 9, 2026
- Why
- To enable focused and sharper capital market access due to distinct risks and competition in the power business
Key facts
- Company
- Vedanta Limited
- Subsidiary
- Talwandi Sabo Power Limited (TSPL)
- Date of Approval
- January 9, 2026
- Share Price Change
- 1.05% increase
- Creditor Support
- 100% secured, 99.99% unsecured
- TSPL Net Worth (Pre-Demerger)
- Rs 3,606 crore
- TSPL Net Worth (Post-Demerger)
- Rs 8,207 crore
- Vedanta Net Worth (Post-Demerger)
- Rs 43,230 crore
