Vedanta Resources Disclosure on Share Encumbrance
Vedanta Resources Limited (VRL) has made a disclosure under SEBI's Takeover Regulations regarding the creation of encumbrances on shares of its subsidiaries, including Vedanta Oil and Gas Ltd. This action is linked to the issuance of new senior bonds by its subsidiary, Vedanta Resources Finance II PLC. The new bonds include US$125 million due 2032, US$50 million due 2034, and US$225 million due 2037. These issuances are tap issuances, consolidating with previously issued bonds. The disclosure clarifies that while no direct pledge has been created on shares, the terms and conditions of the new bonds may constitute an 'encumbrance' under the Takeover Regulations, potentially restricting the disposal of assets by promoter group entities under certain conditions, including an Event of Default. VRL is required to maintain at least 50.1% control over Vedanta Oil and Gas.
Key Highlights
- Vedanta Resources discloses share encumbrance under SEBI Takeover Regulations.
- Encumbrance relates to new US$400 million senior bonds issued by a subsidiary.
- Terms of bonds may restrict asset disposal by promoter group entities.
- VRL must retain at least 50.1% control over Vedanta Oil and Gas.
- No direct pledge on shares created for these new bonds.
Price Impact
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