Shareholding17 Apr 2026, 10:28 am
Vedanta encumbers 50.1% HZL shares for $125M external borrowing
AI Summary
Vedanta Limited has disclosed an encumbrance on 50.1% of its equity shares in Hindustan Zinc Limited (HZL), a subsidiary. This action is linked to an external commercial borrowing of US $125,000,000 availed by Vedanta. A facility agreement dated April 14, 2026, was executed with JPMorgan Chase Bank N.A. and Axis Trustee Services Limited. Under the agreement, Vedanta is required to beneficially hold and directly control at least 50.1% of HZL's issued share capital and is restricted from creating further security or disposing of this stake until the loan is fully settled. This condition falls under the definition of "encumbrance" as per SEBI Takeover Regulations, necessitating this disclosure.
Key Highlights
- Vedanta secured a US $125 million external commercial borrowing.
- 50.1% of Hindustan Zinc shares are encumbered as collateral for the loan.
- Vedanta must maintain at least 50.1% beneficial holding and control in HZL.
- The company is restricted from disposing or creating further security on these shares.
- Disclosure made under SEBI Takeover Regulations regarding the encumbrance.