Vedanta Promoter Encumbers Shares for $400M Tap Bonds

Vedanta Resources Limited (VRL), the promoter of Vedanta Aluminium Metal Ltd (VAML) and other Indian subsidiaries, has disclosed the creation of encumbrance over the equity shares of these subsidiaries. This disclosure is made under SEBI (SAST) Regulations, 2011, following the issuance of new "Tap Bonds" by its subsidiary, Vedanta Resources Finance II PLC. These bonds include US$125 million 7.000% bonds due 2032, US$50 million 7.375% bonds due 2034, and US$225 million 7.750% bonds due 2037, totaling US$400 million. The encumbrance arises from the terms and conditions of these bonds, which restrict the promoter group entities from creating further encumbrances or disposing of assets unless certain conditions are met. VRL and its subsidiaries are also required to maintain control and at least 50.1% ownership in VAML. The filing clarifies that no direct pledge has been created over the equity shares as of the disclosure date, but the bond terms constitute an encumbrance under Takeover Regulations.