Vedanta Limited Creates Encumbrance Over Hindustan Zinc Limited Shares for Debenture Trust Deed

Vedanta Limited, the parent company of Hindustan Zinc Limited (HZL), has created an encumbrance over certain equity shares of HZL. This encumbrance is in relation to the unsecured, listed, rated, redeemable, non-convertible debentures (Debentures) of INR 2,575 crore issued by Vedanta Limited on a private placement basis. Axis Trustee Services Limited has been appointed as the Debenture Trustee and a Debenture Trust Deed has been executed between the Company and Axis Trustee Services Limited. The encumbrance is due to the covenants mentioned in the Debenture Trust Deed, which requires Vedanta Limited to directly remain the legal and beneficial owner of 50.1% of the share capital of HZL and directly control HZL until full and final redemption of the Debentures. Vedanta Limited is also restricted from creating any security over or disposing 50.1% of the entire issued share capital or voting rights in HZL.