Kroll Trustee Services, acting as agent, has announced the full release of encumbrances on equity shares of Vedanta Limited (VEDL). These encumbrances were created under various facility agreements and have been lifted effective August 21, 2026, following the complete repayment of all outstanding facilities and liabilities. This action removes restrictions that were previously placed on the shares held by subsidiaries of Vedanta Resources Limited.
Vedanta Share Encumbrances Lifted
Kroll Trustee Services (HK) Limited, in its capacity as the agent for lenders under the Facilities Agreements, has formally disclosed the complete release of all encumbrances over the equity shares of Vedanta Limited (VEDL). This significant development is effective from August 21, 2026.
Background of Encumbrances
These encumbrances were initially established in relation to several facility agreements, including the April 2025 Agreement, June 2025 Agreement, and the May 2026 AR Agreement. The terms stipulated that certain subsidiaries of Vedanta Resources Limited (VRL), such as Twin Star Holdings Ltd. (TSHL), Welter Trading Limited (Welter), Vedanta Holdings Mauritius Limited (VHML), Vedanta Holdings Mauritius II Limited (VHMLII), and Vedanta Netherlands Investments BV (VNIBV), had their equity shares in VEDL subject to these restrictions. These included negative liens and limitations on creating further encumbrances, alongside requirements for VRL Group to maintain at least 50.1% control over VEDL.
Reason for Release
The release of these encumbrances is a direct consequence of the complete repayment of all facilities and associated liabilities under the respective Facilities Agreements. This signifies a clean slate for the pledged equity shares. The disclosure confirms that following this repayment, there are no outstanding encumbrances over the equity shares of VEDL in favour of Kroll.
Demerged Entities Also Cleared
Furthermore, a similar release of encumbrances has been confirmed for 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 June 15, 2026. The encumbrances on their shares, as per the Facilities Agreement terms, have also been fully released effective August 21, 2026.
Source: BSE
