Citicorp International Limited has announced the release of encumbrances on 51.93% of Vedanta Limited’s equity shares. These shares were held by promoter entities Twin Star Holdings, Welter Trading, and Vedanta Holdings Mauritius II. The release, effective September 17, 2026, follows the full repayment of the US$1.1 billion guaranteed senior bonds. This action clears previous restrictions on the promoter group’s substantial shareholding.
Encumbrances on Vedanta Shares Released
Citicorp International Limited, acting as trustee for bondholders, has disclosed the release of encumbrances on a significant portion of Vedanta Limited (VEDL) equity shares. The affected shares, representing 51.93% of VEDL’s total equity, were held by entities within the promoter group, namely Twin Star Holdings Limited (TSHL), Welter Trading Limited, and Vedanta Holdings Mauritius II Limited (VHMLII). These entities are subsidiaries of Vedanta Resources Limited (VRL).
Background of the Encumbrances
The encumbrances were initially created in relation to two series of guaranteed senior bonds issued by Vedanta Resources Finance II PLC, a subsidiary of VRL. These bonds, totaling US$550,000,000 each, were due in 2030 and 2033. As per the terms of these bonds, the promoter entities were restricted from creating or permitting security interests over their assets, including VEDL shares, without fulfilling certain conditions. These conditions were deemed to fall under the definition of ‘encumbrance’ as per the Takeover Regulations. It is clarified that no direct pledge was created on the VEDL equity shares themselves.
Release Effective September 17, 2026
The release of these encumbrances took effect on September 17, 2026, coinciding with the complete repayment and settlement of the aforementioned bonds in full. This signifies a removal of previously imposed restrictions on the substantial shareholding held by the promoter group entities in Vedanta Limited. It is important to note that this disclosure pertains specifically to the release of encumbrances related to these particular bonds; other outstanding bonds and their associated encumbrances remain unaffected.
Demerged Entities and Further Releases
Additionally, the document notes that consequent upon the complete repayment of the Bonds, all encumbrances, if any, subsisting over the equity shares of the four demerged entities of VEDL (Vedanta Aluminium Metal, Vedanta Oil and Gas, Vedanta Power, and Vedanta Iron and Steel), which were listed on June 15, 2026, have also been fully released effective September 17, 2026.
Source: BSE
