Vedanta share price edges higher after THIS update on encumbrance of shares by promoter group. Details here
Vedanta share price gained 0.5% to the day's high of ₹ 456.85 apiece. The large-cap stock, with a market capitalisation of ₹ 1.77 lakh crore, is trading 13% away from its 52-week high of ₹ 527 but is up 26% from its 52-week low of ₹ 362.20.
Vedanta shares are up 2.5% year-to-date, however, in the last one year, the dividend-paying stock has lost 2%.
Twin Star entered into a loan agreement for $200 million with Canara Bank (London Branch) in June 2022. As part of this, an encumbrance was created over Vedanta shares held by Twin Star, Welter Trading, Vedanta Holding Mauritius Limited (VHML), Vedanta Holding Mauritius II Limited (VHMLII), and Vedanta Netherlands Investments B.V. (VNIBV).
Additionally, on September 29, 2022, a subsequent facility agreement was entered into by Vedanta Resources Limited with Canara Bank (London Branch) for a loan agreement of $100 million. This also led to an encumbrance over Vedanta shares.
VRL, Twin Star, Welter, VHML, VHMLII, and VNIBV — collectively form the Promoter Group of Vedanta Limited.
The company informed today that as of July 3, 2025, the $200 million facility taken by Twin Star has been fully repaid. Accordingly, all encumbrances created under the June 28, 2022, Facility Agreement have been released.
For clarity, no actual pledge of Vedanta shares was made by any Promoter Group Entities under the June 28, 2022, agreement, it said.
Vedanta Resources Finance II PLC ('VRFII') had previously issued $600,000,000 Bonds at 9.25% interest, originally due in 2026. These Bonds were guaranteed by Vedanta Resources Limited.
The company said that the entire outstanding amount on the Bonds has been fully repaid. Following the receipt of a No Objection Certificate dated July 07, 2025, the Bonds have been fully redeemed and all encumbrances created under the Bonds and the associated Trust Deed have been released.
No pledge was created over the equity shares of Vedanta by any of the promoter group entities in connection with these bonds, the company clarified.
Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
19 hours ago
- Mint
Vedanta share price edges higher after THIS update on encumbrance of shares by promoter group. Details here
Shares of metal and mining major Vedanta Limited traded in the green on Tuesday after the company informed exchanges about the release of encumbrances created on its shares following the repayment of loans and bonds by the promoter group. Vedanta share price gained 0.5% to the day's high of ₹ 456.85 apiece. The large-cap stock, with a market capitalisation of ₹ 1.77 lakh crore, is trading 13% away from its 52-week high of ₹ 527 but is up 26% from its 52-week low of ₹ 362.20. Vedanta shares are up 2.5% year-to-date, however, in the last one year, the dividend-paying stock has lost 2%. Twin Star entered into a loan agreement for $200 million with Canara Bank (London Branch) in June 2022. As part of this, an encumbrance was created over Vedanta shares held by Twin Star, Welter Trading, Vedanta Holding Mauritius Limited (VHML), Vedanta Holding Mauritius II Limited (VHMLII), and Vedanta Netherlands Investments B.V. (VNIBV). Additionally, on September 29, 2022, a subsequent facility agreement was entered into by Vedanta Resources Limited with Canara Bank (London Branch) for a loan agreement of $100 million. This also led to an encumbrance over Vedanta shares. VRL, Twin Star, Welter, VHML, VHMLII, and VNIBV — collectively form the Promoter Group of Vedanta Limited. The company informed today that as of July 3, 2025, the $200 million facility taken by Twin Star has been fully repaid. Accordingly, all encumbrances created under the June 28, 2022, Facility Agreement have been released. For clarity, no actual pledge of Vedanta shares was made by any Promoter Group Entities under the June 28, 2022, agreement, it said. Vedanta Resources Finance II PLC ('VRFII') had previously issued $600,000,000 Bonds at 9.25% interest, originally due in 2026. These Bonds were guaranteed by Vedanta Resources Limited. The company said that the entire outstanding amount on the Bonds has been fully repaid. Following the receipt of a No Objection Certificate dated July 07, 2025, the Bonds have been fully redeemed and all encumbrances created under the Bonds and the associated Trust Deed have been released. No pledge was created over the equity shares of Vedanta by any of the promoter group entities in connection with these bonds, the company clarified. Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Economic Times
20 hours ago
- Economic Times
Vedanta shares down 2% in 1 year but giving 7% dividend. Is it enough to buy the stock?
Metal major Vedanta, one of the top 10 dividend-yielding stocks, has seen its share price struggle on Dalal Street over the past year. Despite offering a healthy 12-month dividend yield of 7%, the large-cap stock has declined 2% in the same period. This raises a crucial question if investors should consider buying it purely for its attractive dividend, despite its uninspiring stock performance. ADVERTISEMENT Stock's dividend yield in FY24, FY23 and FY22 stood at 7%, 24.2% and 10.7%, respectively according to a note by SBI Securities. Kranthi Bathini, Director-Equity Strategy at WealthMills Securities said that Vedanta shares draw their popularity among investors from high dividend yield. He attributed the current underperformance to the demerger overhang while highlighting that the company has suffered corporate governance issues in the past. His advice to investors is to wait till the time the demerger is similar sentiments, Sunny Agrawal, Head - Retail Fundamental Desk at SBI Securities told ETMarkets to buy the stock only when the demerger takes place as it will unlock value for the analyst Nilesh Jain also does not find Vedanta's current proposition attractive on charts. In the absence of any clear trend, it is best to avoid the stock for now, the Head Vice President, Equity Research Technical and Derivatives at Centrum Broking opined. ADVERTISEMENT However, brokerage firm Emkay takes a contra view on Vedanta stock as it recommends a 'Buy' view on the counter for a price target of Rs 525. The reason for its optimism is Hindustan Zinc (HZL), a key profit driver for Vedanta. The company plans to double its capacity to 2mt by the end of the decade from 1.1mt currently and the first step includes a 250kt zinc smelting expansion at Debari with Rs120bn capex, targeting completion in 36 months. Vaibhav Vidwani, Research Analyst at Bonanz's Vidwani has also recommended a 'Buy' on Vedanta riding on the prospects of HZL. The profitability will be supported by the price of silver (Hindustan Zinc) and aluminium, while the company's core business remains solid, he said. "Expansion in both upstream and downstream in the aluminium industry, the Sijimali bauxite mine and backward integration for the aluminium smelter will support revenue growth in the upcoming year," he added. ADVERTISEMENT Also read: IT stocks hit decade-high 3.2% dividend yield as FIIs flee. Should you buy TCS, Infosys, Wipro before Q1 results? Vedanta shares have delivered modest returns of 2% so far in 2025, underperforming the Nifty, which is up 7.2% year-to-date and 4.7% over the past 12 months. In comparison, the Nifty Metal index — a benchmark for the sector — has gained 10% YTD but remains down 3.6% on a 12-month prices have not moved despite the merger news. In March, Vedanta extended the deadline of the demerger of its businesses from March 31, 2025, to September 30, 2025, citing pending approvals from government authorities and the National Company Law Tribunal (NCLT). The mining conglomerate is looking to demerge its businesses - aluminium, oil & gas, power and steel- as separate entities. At present, these businesses are subsumed within Vedanta Ltd, which is an Indian arm of UK-based Vedanta Resources. There will be no change in the overall shareholding structure. ADVERTISEMENT Chairman Anil Agarwal in a letter to company shareholders had said that he envisions each of the four newly demerged companies to potentially grow into a $100 billion company. Post the demerger, every Vedanta shareholder - both retail and institutional - will receive one new share in each of the newly demerged major Vedanta posted strong operational performance in Q1FY26 across its portfolio. The Lanjigarh Refinery reported a record quarterly alumina production of 587 kt, marking a 9% year-on-year and a 36% quarter-on-quarter jump. The mining major had reported stellar Q4FY25 earnings posting a 154% year-on-year rise in consolidated net profit to Rs 3,483 crore while the revenue from operations grew 14% YoY to Rs 40,455 crore. ADVERTISEMENT Also read: Titan shares give Rs 900 crore shock to Jhunjhunwalas. What brokerages say on Tata's bluechip stock Vedanta has also been focusing on debt reduction and the company's CFO Ajay Goel in a company filing had said that Vedanta's balance sheet deleveraged by $500 million in Q4 with a closing net Debt of $6.2 billion, enabling substantial improvement in leverage to 1.2x. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
Time of India
20 hours ago
- Time of India
Vedanta shares down 2% in 1 year but giving 7% dividend. Is it enough to buy the stock?
Vedanta shares have struggled despite a strong 7% dividend yield and robust operational performance. Analysts remain cautious due to the pending demerger and past governance issues. While some advise waiting, others see long-term value, driven by Hindustan Zinc's growth plans, aluminium expansion, and the company's focus on debt reduction. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Vedanta's share price conundrum Tired of too many ads? Remove Ads Metal major Vedanta , one of the top 10 dividend-yielding stocks, has seen its share price struggle on Dalal Street over the past year. Despite offering a healthy 12-month dividend yield of 7%, the large-cap stock has declined 2% in the same period. This raises a crucial question if investors should consider buying it purely for its attractive dividend, despite its uninspiring stock dividend yield in FY24, FY23 and FY22 stood at 7%, 24.2% and 10.7%, respectively according to a note by SBI Bathini, Director-Equity Strategy at WealthMills Securities said that Vedanta shares draw their popularity among investors from high dividend yield. He attributed the current underperformance to the demerger overhang while highlighting that the company has suffered corporate governance issues in the advice to investors is to wait till the time the demerger is similar sentiments, Sunny Agrawal, Head - Retail Fundamental Desk at SBI Securities told ETMarkets to buy the stock only when the demerger takes place as it will unlock value for the analyst Nilesh Jain also does not find Vedanta's current proposition attractive on charts. In the absence of any clear trend, it is best to avoid the stock for now, the Head Vice President, Equity Research Technical and Derivatives at Centrum Broking brokerage firm Emkay takes a contra view on Vedanta stock as it recommends a 'Buy' view on the counter for a price target of Rs 525. The reason for its optimism is Hindustan Zinc (HZL), a key profit driver for Vedanta. The company plans to double its capacity to 2mt by the end of the decade from 1.1mt currently and the first step includes a 250kt zinc smelting expansion at Debari with Rs120bn capex, targeting completion in 36 Vidwani, Research Analyst at Bonanz's Vidwani has also recommended a 'Buy' on Vedanta riding on the prospects of HZL. The profitability will be supported by the price of silver (Hindustan Zinc) and aluminium, while the company's core business remains solid, he said. "Expansion in both upstream and downstream in the aluminium industry, the Sijimali bauxite mine and backward integration for the aluminium smelter will support revenue growth in the upcoming year," he shares have delivered modest returns of 2% so far in 2025, underperforming the Nifty , which is up 7.2% year-to-date and 4.7% over the past 12 months. In comparison, the Nifty Metal index — a benchmark for the sector — has gained 10% YTD but remains down 3.6% on a 12-month prices have not moved despite the merger news. In March, Vedanta extended the deadline of the demerger of its businesses from March 31, 2025, to September 30, 2025, citing pending approvals from government authorities and the National Company Law Tribunal (NCLT). The mining conglomerate is looking to demerge its businesses - aluminium, oil & gas, power and steel- as separate entities. At present, these businesses are subsumed within Vedanta Ltd, which is an Indian arm of UK-based Vedanta Resources. There will be no change in the overall shareholding Anil Agarwal in a letter to company shareholders had said that he envisions each of the four newly demerged companies to potentially grow into a $100 billion company. Post the demerger, every Vedanta shareholder - both retail and institutional - will receive one new share in each of the newly demerged major Vedanta posted strong operational performance in Q1FY26 across its portfolio. The Lanjigarh Refinery reported a record quarterly alumina production of 587 kt, marking a 9% year-on-year and a 36% quarter-on-quarter jump. The mining major had reported stellar Q4FY25 earnings posting a 154% year-on-year rise in consolidated net profit to Rs 3,483 crore while the revenue from operations grew 14% YoY to Rs 40,455 has also been focusing on debt reduction and the company's CFO Ajay Goel in a company filing had said that Vedanta's balance sheet deleveraged by $500 million in Q4 with a closing net Debt of $6.2 billion, enabling substantial improvement in leverage to 1.2x.
