MUMBAI: Vedanta announced that it has acquired Electrosteel Steel following requisite approvals the NCLT and Competition Commission of India.
The company has initiated implementation of the resolution plan.
The company wholly-owned subsidiary, Vedanta Star (VSL) has deposited the upfront amount of Rs 5320 crore in the escrow account of Electrosteel Steel and June 04, 2018 has been determined to be the 'Effective Date' under the Resolution Plan.
The company has acquired management control and as per the provision of the resolution plan and new board of directors has been put in the place.
As per the provision of the resolution plan, Company will hold 90 pc of the paid up capital of Electrosteel Steel.
The investment from VSL in ESL shall be done through a combination of equity of Rs 1765 crore and inter-corporate loan of Rs 3555 crore.