Vedanta Resources Limited has announced the complete release of encumbrances on equity shares of Vedanta Limited held by its direct and indirect subsidiaries. This release, effective from August 07, 2026, follows the full repayment of a US$ 500,000,000 facility agreement. The encumbrances, which had restricted the creation of security or disposal of shares, were in place as part of the finance documents for the facility.
Encumbrances Lifted on Vedanta Shares
Vedanta Resources Limited (VRL) has confirmed the full release of encumbrances on equity shares of Vedanta Limited (VEDL) held by its promoter group entities. This action follows the complete repayment of a significant facility agreement, originally for an amount aggregating up to US$ 500,000,000. The encumbrances, which included restrictions on creating security or disposing of shares, were originally established under a facility agreement dated May 31, 2022.
Details of the Release
The release of these encumbrances is effective from August 07, 2026. This development is a direct consequence of the borrower fulfilling all secured obligations under the aforementioned facility agreement. The disclosure, made under Regulation 31 of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, pertains to the equity shares held by VRL’s direct and indirect subsidiaries, including those held by Vedanta Holdings Jersey Limited and Vedanta Holdings Mauritius Limited, who were part of the promoter group.
Previous Disclosure and Context
VRL had previously disclosed the creation of these encumbrances in an earlier disclosure dated June 02, 2022. The facility involved multiple parties, including State Bank of India as the arranger, underwriter, original lender, and agent, and The Law Debenture Trust Corporation P.L.C. as the security agent. An offshore security agent agreement was also executed with Axis Trustee Services Limited. The encumbrances were considered to fall within the definition of ‘encumbrance’ under Chapter V of the Takeover Regulations.
Impact of Demerger
Additionally, the company noted that following the scheme of arrangement and the demerger of four entities of VEDL, all encumbrances, if any, subsisting over the equity shares of the newly listed Demerged Entities have also been fully released with effect from August 07, 2026. This release is also consequent to the complete repayment of the facility and discharge of secured obligations.
Source: BSE
