Vedanta enters steel with acquisition of Electrosteel Steels, to hold 90%

New board put in place for ESL; Vedanta will fund 90% stake through combo of equity of Rs 17.65 bn and inter-corporate loan of Rs 35.55 bn

Anil Agarwal-promoted Vedanta Ltd announced on Monday that it has acquired the control of Electrosteel Steels Ltd (ESL) under a resolution plan that became effective Monday. 

"Pursuant to the order dated May 30, 2018 of National Company Law Appellate Tribunal, Vedanta is implementing the approved Resolution Plan for Electrosteel Steels Limited," the company said in a statement. 

Accordingly, Vedanta Star Limited (VSL), a wholly-owned subsidiary of Vedanta, has deposited the upfront amount of Rs 53.2 billion in escrow account of ESL.

A new board of directors has been put in place for ESL. According to the company, Vedanta, which will