Vedanta Limited has announced the successful full redemption of its Non-Convertible Debentures as of May 14, 2026. Consequently, all encumbrances created over the equity shares of its subsidiary, Hindustan Zinc Limited (HZL), have been fully released. This move concludes the pledge arrangements that were originally established to secure the financing, marking a significant step in the company’s capital and debt management strategy.
Completion of Debt Redemption
Vedanta Limited has confirmed that all encumbrances placed on its shareholding in Hindustan Zinc Limited (HZL) have been officially released. This action follows the successful full redemption of the Non-Convertible Debentures on May 14, 2026, which were governed by a debenture trust deed dated May 10, 2024. With this redemption, the company has cleared the specific security obligations that were linked to its 50.1% holding requirement in the subsidiary.
Details of the Share Release
As part of the previous financing arrangement, the company had pledged a total of 4,27,90,960 equity shares of HZL, representing 1.01% of the listed capital. A portion of this pledge, involving 95,91,486 shares (0.23%), was previously released on May 14, 2025, following a partial redemption of the debentures. Following the final redemption on May 14, 2026, the remaining 3,31,99,474 equity shares (0.78%) are currently undergoing the release process through the depository system.
Strategic Significance
The release of these encumbrances signifies the termination of the restrictive covenants that limited the company’s ability to create security over a specific portion of its HZL shareholding. By fulfilling these obligations, Vedanta Limited has successfully concluded the collateral requirements associated with the debenture issuance, providing greater flexibility in its management of the subsidiary’s equity moving forward.
Source: BSE
