Citicorp International Limited, acting as trustee for holders of the December 2024 Bonds Series 2, has announced the full release of all encumbrances on Vedanta Limited (VEDL) equity shares. These encumbrances were placed by subsidiaries of Vedanta Resources Limited, including Twin Star Holdings Ltd, Welter Trading Limited, and Vedanta Holdings Mauritius II Limited. The release is effective from 07 August 2026, following the complete repayment and settlement of the aforementioned bonds.
Encumbrances on VEDL Shares Fully Released
Citicorp International Limited, acting as the trustee for the holders of the December 2024 Bonds Series 2, has confirmed the complete release of all encumbrances that were previously placed on the equity shares of Vedanta Limited (VEDL). These encumbrances were established in relation to the US$ 550,000,000 11.25 per cent Guaranteed Senior Bonds due 2031, issued on 03 December 2024.
Background of the Encumbrances
Previously, disclosures indicated that subsidiaries of Vedanta Resources Limited (VRL), specifically Twin Star Holdings Ltd (“Twin Star”), Welter Trading Limited (“Welter”), and Vedanta Holdings Mauritius II Limited (“VHMLII”), had encumbered their holdings in VEDL. These encumbrances were pursuant to the terms and conditions of the December 2024 Bonds Series 2. The terms stipulated restrictions on creating or permitting encumbrances, specified conditions for acquiring or disposing of VEDL shares, and outlined procedures following an Event of Default.
Effective Date of Release
Following the complete repayment and settlement of the December 2024 Bonds Series 2, all associated encumbrances have been fully released. This release is effective as of 07 August 2026. The notification is made by Citicorp in its capacity as trustee, in compliance with Regulation 29(2) read with Regulation 29(4) of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.
Impact on Demerged Entities
Furthermore, the release extends to any encumbrances that may have subsisted over the equity shares of the four demerged entities of VEDL – Vedanta Aluminium Metal Limited, Vedanta Oil and Gas Limited, Vedanta Power Limited, and Vedanta Iron and Steel Limited. These entities were listed on 15 June 2026. Consequently, all encumbrances linked to these demerged entities under the December 2024 Bonds Series 2 have also been fully released effective from 07 August 2026.
Ongoing Obligations
It is important to note that Citicorp continues to act as trustee for other outstanding bonds issued by the Issuer. Encumbrances related to these other bonds, which remain outstanding over the shares of VEDL held by Twin Star, Welter, and VHMLII, are not affected by this disclosure and continue to subsist.
Source: BSE
