08-07-2025
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.
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