Vedanta sets up GIFT City financial arm to improve financial efficiency

Vedanta Ltd on Tuesday said it has set up a wholly-owned financial subsidiary at the International Financial Services Centre in Gujarat’s GIFT City to support its treasury and capital market operations.

In a regulatory filing, the company said the move is aimed at strengthening financial processes, improving capital efficiency, and optimising liquidity management and funding costs.

“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,” the filing said.

The subsidiary, Vedanta Finance IFSC Ltd, has been incorporated with a subscribed capital of Rs 2 crore.

Vedanta is among several Indian companies, including public sector firms such as NMDC Ltd and GAIL (India) Ltd and private groups like Aditya Birla Group, that have set up units at GIFT City to benefit from regulatory incentives and access to global markets.

The move also lines up with the government’s plan to position GIFT City in Gandhinagar as an international financial hub offering favourable tax structures, simplified rules, and direct interaction with overseas investors.

According to the International Financial Services Centers Authority’s (IFSCA) latest annual report, around 864 entities across 35 business segments have been authorised, registered, or licensed at GIFT IFSC. The centre facilitated nearly USD 50 billion in capital inflows into India through the banking and fund industry, including USD 20 billion in FY 2024–25.

(With inputs from agencies)