Vedanta Limited has announced the full release of encumbrances on the equity shares of Vedanta Limited held by its subsidiaries. This release is a direct result of the complete repayment and settlement of the US$ 550,000,000 11.25 per cent Guaranteed Senior Bonds due 2031, issued by Vedanta Resources Finance II plc. The encumbrances were created in connection with these bonds and have now been lifted effective August 07, 2026.
Encumbrances on Vedanta Shares Lifted
Vedanta Limited (VEDL) has disclosed the full release of encumbrances that were previously placed on equity shares of the company. These shares were held by key subsidiaries of Vedanta Resources Limited, namely Twin Star Holdings Ltd, Welter Trading Limited, and Vedanta Holdings Mauritius II Limited. The encumbrances were established as part of the terms and conditions related to the US$ 550,000,000 11.25 per cent Guaranteed Senior Bonds due 2031. These bonds were issued on December 03, 2024, by Vedanta Resources Finance II plc, a subsidiary of Vedanta Resources Limited.
Bond Settlement Triggers Release
The release of these encumbrances is effective from August 07, 2026, following the complete repayment and settlement of the aforementioned December 2024 Bonds Series 2. Previously, disclosures had indicated that these subsidiaries were restricted from creating or permitting any encumbrances on their assets, including VEDL shares, unless specific conditions were met. The terms also outlined restrictions on the acquisition or disposal of VEDL shares and provisions for asset disposal in the event of a default.
Implications for Demerged Entities
In addition to the main VEDL shares, encumbrances on the equity shares of the four demerged entities of Vedanta Limited – Vedanta Aluminium Metal Limited, Vedanta Oil and Gas Limited, Vedanta Power Limited, and Vedanta Iron and Steel Limited – have also been fully released. These demerged entities were listed and commenced trading on June 15, 2026. The release of these encumbrances on the demerged entities also took effect from August 07, 2026, consequent to the bond settlement.
Source: BSE
