StockWatch
·
Zinc
Loan & Debt3 Jul 2026, 10:39 am

Vedanta Limited Encumbers Hindustan Zinc Shares for FACOR Loan

AI Summary

Vedanta Limited has disclosed encumbrance on its shares in Hindustan Zinc Limited (HZL) as part of a corporate guarantee for a ₹1624 crore loan availed by its subsidiary, Ferro Alloys Corporation Limited (FACOR). The loan facility is provided by a consortium of banks led by IDBI Bank. As per the facility agreement, Vedanta must maintain a minimum 50.1% shareholding in HZL until the loan is fully settled. This condition constitutes an 'encumbrance' under SEBI regulations. This disclosure is made in accordance with SEBI (SAST) Regulations, 2011.

Key Highlights

  • Vedanta Limited provides corporate guarantee for FACOR's ₹1624 crore loan.
  • Encumbrance created on Hindustan Zinc Limited (HZL) shares.
  • Vedanta must maintain minimum 50.1% shareholding in HZL.
  • Disclosure made under SEBI (SAST) Regulations, 2011.
  • Loan facility from a consortium of banks led by IDBI Bank.