Vedanta Promoter Group Entities Create Encumbrance on Shares
Vedanta Resources Limited (VRL) and its promoter group entities have disclosed the creation of encumbrances on equity shares of its listed Indian subsidiaries, including Vedanta Limited and Vedanta Power Limited. This action is in relation to the issuance of new Guaranteed Senior Bonds by VRL's subsidiary, Vedanta Resources Finance II PLC. The encumbrance arises from the terms and conditions of these new bonds, which impose restrictions on asset encumbrance and share disposals by the promoter group entities. While no direct pledge has been created on the shares, the conditions stipulated in the bond agreements are considered to fall under the definition of 'encumbrance' as per SEBI (SAST) Regulations, 2011.
Key Highlights
- Promoter group entities disclosed encumbrance on shares of listed subsidiaries.
- Encumbrance is related to new Guaranteed Senior Bonds issuance.
- SEBI (SAST) Regulations are the basis for the disclosure.
- No direct pledge on shares, but bond terms create restrictions.
- VRL must maintain at least 50.1% control over Vedanta Power.
Price Impact
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