Vedanta Resources Limited (VRL) has announced the full release of encumbrances on equity shares held by its subsidiaries, Twin Star Holdings, Welter Trading, and Vedanta Holdings Mauritius II. This release is effective from 17 September 2026, following the complete repayment and settlement of the US$1.1 billion guaranteed senior bonds issued by Vedanta Resources Finance II PLC. These encumbrances, created as part of the bond terms, had previously restricted certain actions related to the shares of Vedanta Limited.
Encumbrances Lifted on Vedanta Limited Shares
Vedanta Resources Limited (VRL) has formally disclosed the release of encumbrances on equity shares of Vedanta Limited (VEDL). These shares are held by VRL’s subsidiaries: Twin Star Holdings Limited, Welter Trading Limited, and Vedanta Holdings Mauritius II Limited. The release is effective as of 17 September 2026.
Background of Encumbrances
The encumbrances were initially established in relation to the terms of two series of guaranteed senior bonds issued by Vedanta Resources Finance II PLC: US$550,000,000 9.475 per cent guaranteed senior bonds due 2030 and US$550,000,000 9.850 per cent guaranteed senior bonds due 2033. Citicorp acted as the trustee for the bondholders. The terms and conditions of these bonds (the “T&Cs”) imposed certain restrictions on the promoter group entities, including Twin Star, Welter, and VHMLII, regarding the creation or subsistence of encumbrances or security interests over their assets and the acquisition or disposal of VEDL shares. These conditions were considered within the definition of ‘encumbrance’ under Chapter V of the Takeover Regulations.
Full Repayment and Release
The announcement confirms that following the complete repayment and settlement of these bonds in full, all encumbrances that were created pursuant to the bond terms have now been released. This marks a significant step in unwinding the financial arrangements associated with the bonds, thereby potentially providing greater flexibility for the promoter group entities.
Demerged Entities Also Affected
Furthermore, the release of encumbrances extends to 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). These entities were listed and commenced trading on 15 June 2026. The encumbrances over their shares, if any, under the T&Cs of the bonds have also been fully released effective 17 September 2026.
The disclosure is made in accordance with Regulation 31 of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.
Source: BSE
