Vedanta Resources Discloses Encumbrance on Subsidiary Shares for Bonds
Vedanta Resources Limited (VRL) has filed a disclosure under SEBI Takeover Regulations regarding the creation of encumbrance over equity shares of its listed Indian subsidiaries, including Vedanta Limited and Vedanta Power Limited. This encumbrance stems from the issuance of US$400 million in Tap Bonds (due 2032, 2034, 2037) by Vedanta Resources Finance II PLC, a VRL subsidiary. The terms and conditions of these bonds impose restrictions on the promoter group entities regarding creating further encumbrances, acquiring or disposing of subsidiary shares, and require VRL to maintain at least 50.1% control over Vedanta Power Limited. Although no direct pledge has been created, the bond conditions are deemed to fall within the definition of 'encumbrance' under the Takeover Regulations. This disclosure follows similar ones made for previously issued Original Bonds.
Key Highlights
- VRL disclosed encumbrance on shares of its listed Indian subsidiaries.
- Relates to US$400 million Tap Bonds issued by a VRL subsidiary.
- Bond terms restrict share dealings and mandate VRL control over VPL.
- Conditions are considered 'encumbrance' under Takeover Regulations.
- No direct pledge has been created on the subsidiary shares.
Price Impact
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