NCLT Gives Nod To Merger Of Vedanta’s VSL With Electrosteel Steels
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 Ltd.
Post the amalgamation becoming effective, Vedanta will directly hold 95.48 percent in ESL. Vedanta had acquired ESL, after its resolution plan was approved by National Company Law Tribunal, Kolkata bench, 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.