Axis Trustee Services Limited, as offshore security agent, has disclosed the full release of encumbrances over 54.72% of the equity shares of Vedanta Limited (VEDL). These encumbrances were created under a facility agreement dated May 31, 2022. The release is effective from August 7, 2026, following the complete repayment of the facility. This action removes restrictions on the promoter group entities regarding the sale, lease, transfer, or disposal of these shares.
Encumbrances on Vedanta Shares Fully Released
Axis Trustee Services Limited (ATSL), acting as the offshore security agent, has announced the complete release of encumbrances on a substantial portion of Vedanta Limited’s (VEDL) equity shares. This significant development pertains to shares held by direct and indirect subsidiaries of Vedanta Resources Limited (VRL), specifically impacting 54.72% of VEDL’s total share capital. The encumbrances were originally established in connection with a facility agreement dated May 31, 2022, for an aggregate amount of up to US$ 500,000,000.
Impact of Facility Repayment
The release of these encumbrances, which included restrictions on the creation of any security, sale, lease, transfer, or other disposal of VEDL shares, is a direct consequence of the complete repayment of the aforementioned facility. ATSL confirmed that all secured obligations under the Facility Agreement have been discharged, leading to the full release of these encumbrances, effective from August 7, 2026. This means that promoter group entities are now free to deal with these shares without the prior restrictions.
Disclosure Under Takeover Regulations
This disclosure is being made by ATSL in its capacity as the offshore security agent for the secured parties under the Facility Agreement. It specifically addresses the release of encumbrances under Regulation 29(2) read with Regulation 29(4) of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. Prior disclosures detailed the creation of these encumbrances, which affected shares held by promoter group entities, including Vedanta Holdings Jersey Limited and Vedanta Holdings Mauritius Limited. A non-disposal undertaking over 107,342,705 shares held by VHML is also in the process of being released, with no separate disclosure planned for that specific release.
Source: BSE
