Vedanta Power shares dropped more than 3% on Thursday, falling below their listing price after debuting earlier this week following the Vedanta demerger. According to reports from The Economic Times, the shares dropped to ₹40.70 apiece on the NSE, with the company's market capitalisation nearing ₹16,000 crore. The stock had debuted at ₹41.80 per share on the NSE on Monday, with shares falling 2% on the first day, another 2% on Tuesday, before jumping 5% on Wednesday. Meanwhile, Vedanta Iron & Steel shares hit the 5% upper circuit for a fourth straight session, extending gains to over 20% since listing. The stock was trading around ₹24.37, taking its market capitalisation to approximately ₹9,521 crore.
As reported by The Economic Times, Vedanta Power aims to become one of India's top three private thermal power players by FY33 through a combination of organic expansion and asset turnarounds. The company's portfolio comprises Vedanta Power Talwandi Sabo Thermal Plant in Punjab (1,980 MW), Vedanta Power Meenakshi Energy in Andhra Pradesh (1,000 MW), Vedanta Power Sakti in Chhattisgarh (600 MW operational with another 600 MW under commissioning), and Vedanta Power Jharsuguda Thermal Plant in Odisha (600 MW). The company believes coal will continue to play an important role in India's energy mix for decades to come, while evaluating future growth opportunities across hydro, battery storage and nuclear power as part of its long-term diversification strategy.
Vedanta Iron & Steel's rally has been fuelled by strong investor interest and a high-profile investment from Azim Premji-backed Premji Invest. According to The Economic Times, PI Opportunities AIF V LLP, an investment vehicle of Premji Invest, acquired nearly 4.84 crore shares worth ₹101.68 crore through a bulk deal on Monday, purchasing the shares at ₹21.02 apiece shortly after the company's market debut. The stock has hit its 5% upper circuit in every session since listing, with a relatively low free float further amplifying demand-supply dynamics. Investors are betting that Vedanta Iron & Steel, as a standalone entity, could benefit from greater operational focus and potentially command a higher valuation over time.
According to analysts cited by The Economic Times, Vedanta Power remains the most defensive among the four newly listed entities, supported by regulated returns. Analysts suggest a framework for investors based on four key variables: where the underlying commodity sits in its cycle, balance-sheet position post-demerger, capex visibility and execution credibility, and regulatory environment specific to the sub-sector. The analyst noted that power is the most defensive of the four, with regulated returns offering stability but limited upside, while oil and gas face the most challenging setup with mature fields and declining production trajectory.
