Vedanta Incorporates Wholly Owned Subsidiary in GIFT City

GUJARAT:

Vedanta Limited said in an exchange filing that it has incorporated a wholly owned subsidiary “Vedanta Finance IFSC Limited” in the International Financial Services Centre (IFSC) at GIFT City in Gandhinagar, Gujarat.

As per Vedanta, the move will help the company meet broader financial objectives. The incorporation, as per the exchange filing, is in line with the company’s commitment to financial excellence and capital efficiency, and the broader objective of optimizing treasury operations, cost of funding, and liquidity management.

“The proposed subsidiary will act as a financial conduit for treasury and capital market activities, enabling Vedanta to unlock efficiencies and strengthen its financial architecture in a globally competitive environment,” Vedanta said. The subscribed capital of the company is Rs 2 crore.

Vedanta’s move follows a growing trend among Indian corporates leveraging GIFT City for financial operations. Public sector companies such as NMDC Limited and GAIL India Ltd have also established subsidiaries in the IFSC to strengthen treasury capabilities and facilitate global transactions efficiently. Similarly, leading private sector groups like Aditya Birla Group have also set up presence in GIFT City. Major global banks and financial institutions are establishing units there, driven by favorable tax policies, simplified regulations, and the vision of GIFT City as a major international financial hub.

The incorporation aligns with the Government of India’s initiative to develop Gujarat’s GIFT City as a premier international financial hub, providing companies with access to a modern financial ecosystem and regulatory advantages. GIFT City is India’s first and only International Financial Services Centre (IFSC), enabling companies to directly engage with global investors and arrange financing for new projects.

As per the International Financial Services Centers Authority’s latest annual report, the regulator had authorized, registered or licensed around 864 entities across 35 business segments. Regulated entities in GIFT IFSC facilitated inward capital flows of nearly USD 50 billion into India via the banking and fund industry, of which USD 20 billion was in FY 2024-25.