VRL discloses encumbrance on Vedanta subs shares for new bonds
Vedanta Resources Limited (VRL) has disclosed reasons for encumbrance over the equity shares of its listed Indian subsidiaries, including Vedanta Limited, Vedanta Power Limited, Vedanta Oil and Gas Limited, Vedanta Iron And Steel Limited, and Vedanta Aluminium Metal Limited. This disclosure is made under SEBI (SAST) Regulations, 2011, and relates to new bond issuances (Tap Bonds) by Vedanta Resources Finance II PLC, a VRL subsidiary. The Tap Bonds include US$125 million due 2032, US$50 million due 2034, and US$225 million due 2037. The terms and conditions of these bonds impose restrictions on Promoter Group Entities, including limitations on creating further encumbrances, acquiring or disposing of shares, and VRL maintaining at least 50.1% equity control over VISL. While these conditions are deemed an 'encumbrance' under Takeover Regulations, it is clarified that no direct pledge has been created over the shares as of the disclosure date.
Key Highlights
- VRL disclosed encumbrance reasons for shares of its Indian subsidiaries.
- Encumbrance relates to new Tap Bonds issued by VRL's subsidiary.
- Bond terms restrict promoter actions and require VRL to retain VISL control.
- Conditions in bond terms are considered encumbrance under SEBI rules.
- No direct pledge has been created over the shares as of disclosure date.
Price Impact
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