Vedanta Ltd, a diversified natural resources firm, has established Vedanta Base Metals Ltd as a wholly-owned subsidiary to house its base metals operations. The move is consistent with the company's plan, unveiled last month, to divide its operations into six verticals. The new subsidiary was formed on October 9, and it would have a capitalization of $100,000 with shares of one dollar apiece. Its subscribed capital will similarly be $100,000, with one equity share.
Apart from the basic metals industry, Anil Agarwal's Vedanta aims to establish subsidiaries for its aluminum, power, oil and gas, and iron ore operations. These five companies will be referred to as resulting companies. While the basic metals subsidiary has already been formed, the aluminum and iron ore subsidiaries are in the process of being formed.
Vedanta Limited is an Indian multinational mining firm headquartered in Mumbai, India, with primary activities in Goa, Karnataka, Rajasthan, and Odisha for iron ore, gold, and aluminum mines.
Mitsui & Co. Ltd. sold a 51% controlling stake in Sesa Goa Ltd. to Vedanta Resources Plc, a multinational metals and mining business founded by Anil Agarwal. Vedanta Resources is a constituent of the FTSE 100 Index and is listed on the London Stock Exchange. The transaction was worth 40.7 billion (US$510 million), making it the largest M&A transaction in the industry to date.