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Vedanta – Zinc Twice Before You Act

Author: Published on: Published in: Vedanta (NSE:VEDL)

July 17, 2025 – We understand HZL’s board is due to meet today, due to long-standing tensions between VEDL and GoI interests. Below are some questions we suggest the GoI nominee directors ask VEDL directors in order cut through their habitual lies.

Regarding Brand Fees

  • What services have VRL provided to HZL since October 1, 2022, that were not provided over the previous 20 years?
    • There are no employees or substantial operations at VRL to justify brand fee payments. VRL’s UK operations are effectively shuttered, and its office is for lease with the listing dated January 31, 2025.
    • A perusal of HZL’s costs shows that VRL has not adopted any management or auxiliary services to HZL.
    • HZL does not use the “Vedanta” brand.
  • Is the brand fee a related party transaction?
  • Are brand fees used to secure VRL loans?
  • Are brand fees paid in advance?
  • Did a GoI nominee approve HZL’s brand fee agreement with VRL?

Regarding Serentica

  • Are the HZL board aware that it has invested in OCRPS with a related party for the comical yield of 0.001% per annum?
  • Are the HZL board aware that, on the OCRPS vest in 30 years, at which point the SPV assets will likely be fully depreciated, and the PDAs signed with clients expired?
  • Are the HZL board aware that the PDAs they signed with Serentica, for which they also funded the investment of the capex, are on a cost-plus basis, guaranteeing Serentica’s operating profits?
  • If yes to any of the above, why was this deal signed?
  • If no to any of the above, why did they not know?
  • Did a GoI nominee director approve of these transactions?

Regarding Kannan Ramamirtham’s directorship in PTCC

  • You sit on the Board of PTC Cables Private Limited (PTCC), which has a 1.91% holding in VEDL and a further stake in HZL (0.27% in 2022). Please confirm the ultimate controlling shareholder of PTCC (above Bhadram Janhit Shalika Trust).
  • Please confirm your involvement, as the Chairman of the Audit and Risk Committee of HZL, in the devising of and the approval of the current BSS agreement executed in late 2023.
  • What have you done to manage the conflict of interest between you being a Director of PTCC, a shareholder of both VEDL and HZL, and having the ultimate oversight over the BSS agreement between HZL and VEDL?
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