Apart from extending the inter company loan and revising terms, on Friday, the management informed investors that the brand fee or royalty from Vedanta Limited has increased from 2% to 3%, and the revised rate will remain fixed for six years but may be reviewed periodically, the company management informed analysts and investors during the earnings call on Friday.
While the zinc business is already housed in a listed subsidiary, the plan is to demerge the aluminum, iron and steel, and oil and gas businesses into standalone listed entities.
Following the spinoff, the VRL group will comprise five listed entities. Four of them, VDL and the three newly listed companies will have the same shareholding.