Vedanta Power shares fall 5% over listing price of Rs 41.80 on NSE: Key details

Shares of Vedanta Power Ltd, one of the largest private sector power generators in India, got listed on Monday at Rs 41.80 apiece, a 65.46 per cent discount over its earlier discovered price of Rs 121.03. The scrip is admitted to dealings in the list of T group securities. 

The demerged entity of Vedanta got listed at Rs 41.80 apiece on NSE. It fell 5 per cent to Rs 39.71 over the listing price as the session progressed. On BSE, the Vedanta Power stock debuted at Rs 41.30 apiece and tested a low of Rs 39.25 per share by 10.06 am. 

On Vedanta Power, SBI Securities said it is "one of the largest private sector power generators in India and will house the existing independent power generation assets and pursue opportunities in India’s evolving power market."  It had assigned a fair value of Rs 44 on Vedanta Power. It assigned fair values of Rs 489 on Vedanta Aluminium, Rs 42 on Vedanta Oil and Gas Ltd, Rs 19 on Vedanta Iron and Steel Ltd and Rs 291 on Vedanta, suggesting a total fair value of Rs 885.

ICRA recently assigned a stable outlook on Talwandi Sabo Power (now Vedanta Power), following a greater clarity on the allocation of assets and liabilities, under the demerger scheme of Vedanta group as well as on support framework across group entities. 

The company has tied up its total capacity of 1,980 megawatt (MW) through a 25-year power purchase agreement (PPA) with PSPCL. Under the two-part tariff structure, the company receives a fixed capacity charge (quoted at the time of bidding), subject to maintenance of minimum 80 per cent plant availability annually, while fuel cost is fully passed through. This mitigates offtake risk and provides strong visibility of cash flow, ICRA said recently. 

It noted that Vedanta Power's average plant availability continued to remain above normative levels, at 81 per cent in FY25 and 83 per cent in FY26, thus enabling recovery of fixed charge as per the PPA. The plant availability factor (PAF) should exceed the normative level going forward, though this will remain monitorable.

The ratings factored in the improvement in Vedanta Power's operational and financial risk profile following the inclusion of additional power assets in its portfolio, namely the 600 MW Jharsuguda Independent Power Plant (JIPP) in Odisha, the 600 MW (unit-1) Athena Chhattisgarh Power (ACP) plant in Chhattisgarh (unit-2 600 MW under construction currently), and the 1,000 MW Meenakshi power plant in Andhra Pradesh. 

In addition, ACP’s unit-2 of 600 MW is also expected to be commissioned by the end of ongoing financial year. The expanded asset base is expected to strengthen the overall credit profile through enhanced scale, improved diversification and greater cash flow stability, it noted.