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Informist, Tuesday, Aug. 26, 2025

NEW DELHI - In response to BSE's communication to Vedanta Ltd. on the company's Jun. 5 stock exchange filing announcing the issuance of unsecured non-convertible debentures of up to INR 50 billion, the company Tuesday disclosed that the debt issue carried covenants and undertakings given to debenture trustee Axis Trustee Services Ltd. with regard to Vedanta's shareholding in Hindustan Zinc Ltd. Vedanta said in a stock exchange filing Tuesday that under the debenture trust deed terms, it is required to directly remain the legal and beneficial owner of 50.1% of shares of Hindustan Zinc and directly control Hindustan Zinc, until full redemption of the debentures.

"The company is also restricted from creating any security over or disposing 50.1% of the entire issued share capital or voting rights in HZL (Hindustan Zinc)," Vedanta said in the exchange filing.  The company said the nature of such provisions of the debenture trust deed fell within the definition of encumbrance under SEBI's takeover regulations. 

The encumbrance on Hindustan Zinc shares held by Vedanta was created Jun. 3, the company said in Tuesday's filing. The company further said in the filing the debenture trust deed for the NCD issuance was executed between Vedanta and 33 debenture holders. These debenture holders included Larsen & Toubro Ltd., 11 mutual fund schemes of ICICI Prudential Asset Management Co. Ltd, three mutual fund schemes of Aditya Birla Sun Life AMC Ltd., Creditaccess Life Insurance Ltd., and Aseem Infrastructure Finance Ltd.

Vedanta disclosed in Tuesday's filing that of its 63.42% shareholding in Hindustan Zinc as a promoter, 57.28% shareholding was already under encumbrance. The creation of encumbrance on Jun. 3 under the debenture trust deed on its 50.1% shareholding in Hindustan Zinc did not add to its existing encumbered shareholding, Vedanta said in the filing. The company said this was because the 50.1% encumbrance was based only on the covenants and undertakings mentioned under the debenture trust deed.

Tuesday, shares of Vedanta Ltd. closed at INR 428.20, down 4.9%, and shares of Hindustan Zinc closed at INR 430.15, down 1.1%, on the National Stock Exchange.  End

Reported by Rajesh Gajra

Edited by Akul Nishant Akhoury

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