Vedanta Limited announced the full release of encumbrances on its equity shares in subsidiary Hindustan Zinc Limited (HZL). This release is effective from June 17, 2026, following the prepayment of a facility. The encumbrances, created under a Facility Agreement, were disclosed in a previous filing on July 18, 2024. This development signifies a change in the pledging status of HZL shares held by Vedanta.
Encumbrance Release on Hindustan Zinc Shares
Vedanta Limited has officially disclosed the full release of encumbrances previously placed on the equity shares of its subsidiary, Hindustan Zinc Limited (HZL). This announcement, dated June 19, 2026, follows a prior disclosure made on July 18, 2024, which detailed the creation of these encumbrances.
Key Details of the Release
The release of these encumbrances is effective from June 17, 2026. This action was a direct result of the prepayment made towards a facility previously disclosed. The encumbrances in question were created pursuant to a Facility Agreement, and their release now means these specific arrangements are no longer in effect.
Regulatory Compliance
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. This filing is in response to the definition of ‘encumbrance’ as outlined under Chapter V of the Takeover Regulations and aligns with the master circular dated February 16, 2023.
Impact on Shareholding
Prior to the release, Vedanta Limited held 2,56,52,71,353 shares, representing 60.71% of HZL’s total share capital. Of this, 2,32,58,03,748 shares (55.04%) were previously encumbered. Following the release, the post-event holding of encumbered shares is now 2,32,58,03,748 shares, representing 55.04% of the total share capital, effectively indicating the cessation of the encumbrance on this portion.
Previous Encumbrance Details
The previous disclosure on July 18, 2024, had reported that 2,32,58,03,748 shares, constituting 55.04% of HZL’s total share capital, were encumbered. The release event on June 17, 2026, involved a number of 2,11,68,84,819 shares, representing 50.10% of the share capital, in favour of Victory XII Pte. Ltd..
Source: BSE
