- New entity ‘Vedanta Finance IFSC Ltd’ to enhance capital efficiency and liquidity management
• Move aligns with India Inc.’s growing shift to GIFT City for treasury and financial operations
• Part of Centre’s vision to position GIFT City as a premier international financial hub
GIFT CITY, NE BUSINESS BUREAU
GANDHINAGAR, NOV 19
Vedanta Limited has incorporated a wholly owned subsidiary, Vedanta Finance IFSC Limited, at the International Financial Services Centre (IFSC) in GIFT City, Gandhinagar, the company disclosed in a regulatory filing.
According to Vedanta, the new entity will support the conglomerate’s broader financial objectives by optimising treasury operations, improving liquidity management and reducing funding costs. The move reflects the company’s ongoing commitment to financial excellence and capital efficiency.
“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 company said. The subsidiary has an initial subscribed capital of ₹2 crore.
Vedanta’s strategic step comes amid a rising trend of Indian corporates utilising GIFT City’s IFSC framework for global financial operations. Public sector enterprises like NMDC Limited and GAIL (India) Ltd have already established treasury-focused subsidiaries there, while leading private groups such as the Aditya Birla Group have expanded their presence in the financial hub. Global banks and financial institutions are also increasingly setting up units, drawn by favourable taxation, streamlined regulations and the promise of GIFT City as a world-class financial ecosystem.
The incorporation is closely aligned with the Government of India’s mission to elevate GIFT City as a premier international financial centre, offering companies seamless access to global investors, international markets and competitive financial structures. GIFT City is India’s first and only IFSC and plays a crucial role in enabling companies to raise capital and execute cross-border financial activities.
As per the International Financial Services Centres Authority (IFSCA) annual report, the regulator has so far authorised or registered around 864 entities across 35 business segments. Regulated entities in GIFT IFSC facilitated nearly USD 50 billion in inward capital flows into India through the banking and fund industry, including USD 20 billion in FY 2024–25.
