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Metals and mining major Vedanta is seeking shareholder approval for related-party transactions worth Rs 8,661 crore for the ongoing financial year (FY23).
Three resolutions have been listed on the agenda of the company’s annual general meeting (AGM), to be held on August 10, involving subsidiaries. This includes a related-party deal with Bharat Aluminium Company (BALCO) in which Vedanta has a 51 per cent stake.
The transaction, worth Rs 4,984 crore, will involve the sale and purchase of goods and services, stores and spares and fixed assets during FY23. The other two transactions, with ESL Steel and Sterlite Power Transmission each, are worth Rs 1,712 crore and Rs 1,965 crore, respectively.
Vedanta has said these transactions are needed to achieve synergies and economies of scale, and have been valued by an independent valuer. The company has also received approval from its audit committee to go ahead with the deals, it said.
Last year, the Securities and Exchange Board of India (Sebi) had issued a warning to the company for executing related-party transactions worth Rs 1,407 crore without prior approval of the audit committee.
The company’s independent auditor and secretarial auditor had flagged the issue in the company’s annual report for FY21. In the FY22 annual report, no such issue has been flagged off.
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