Vedanta Ltd on Tuesday said the National Company Law Tribunal, Kolkata Bench, has approved the scheme of amalgamation of its arm Vedanta Star Ltd with Electrosteel Steels Limited (ESL). Post the amalgamation becoming effective, Vedanta will directly hold 95.48 per cent in ESL.
Vedanta Ltd had pursuant to the resolution plan approved by National Company Law Tribunal, Kolkata bench had acquired ESL, through its wholly-owned subsidiary VSL, the company said in a regulatory filing to the BSE. The acquisition of ESL fits into Vedanta’s strategy of forward integration; complementing the existing iron ore set-up as well as mines in Jharkhand, it said. The business has seen a complete turnaround since its takeover with the combination of right people, higher volumes and better cost control leading to a visible positive change.
"This positions ESL to become a significant player in the Indian steel sector," it added.
