Ashurst is advising longstanding client Vedanta Resources on the acquisition, by its Indian listed subsidiary, Vedanta Limited, of approximately 90 per cent. of the paid up share capital of Electrosteel Steels Limited.

The acquisition is being implemented pursuant to a Resolution Plan approved by the Indian National Company Law Tribunal in accordance with India's Insolvency and Bankruptcy Code 2016.  Pursuant to the Resolution Plan, a wholly-owned subsidiary of Vedanta Limited will subscribe for shares of Electrosteel for an aggregate amount of INR Rs. 1,805 Crores (US$275.7 million) and provide additional funds of INR Rs. 3,515 Crores (US$536.9 million) by way of debt. The funds received by Electrosteel as debt and equity will be used to fully settle the debts owed to the existing financial creditors of Electrosteel, by payment of INR 5,320 Crores (US$812.6 million).

Electrosteel manufactures pig iron, billets, thermo mechanically treated bars, wire rods and ductile iron pipes and owns and operates a greenfield integrated steel manufacturing facility near Bokaro, Jharkhand, India. Its shares are listed on the Bombay Stock Exchange and the National Stock Exchange of India.
Vedanta Limited is one of the world's largest diversified natural resources companies, and is listed on the Bombay Stock Exchange and the National Stock Exchange of India with American Depositary Shares listed on the New York Stock Exchange.

The transaction will complement the Vedanta group’s existing iron ore business and enable the group to take advantage of favourable market dynamics within the steel industry in India. The transaction is also in-line with the group's focus on investing in local communities and providing organised employment in India.

The Ashurst team is being led by corporate partner Tom Mercer, assisted by counsel Caroline Chambers, and associates Aimee Carroll-Hewitt, Amber Walker and Demi Pham.