Encumbrances Over Vedanta Ltd Shares Fully Released Following Bond Repayment
Citicorp International Limited, acting as trustee for the holders of specific bonds issued by Vedanta Resources Finance II plc, announced that all encumbrances previously held over the equity shares of Vedanta Limited (VEDL) have been fully released. This release is effective from July 17, 2026, following the complete repayment and settlement of the relevant Bonds.The encumbrances related to these bonds were created under the terms and conditions of three specific bond issuances by Vedanta Resources Finance II plc:
- US$ 900,000,000 in 10.875 per cent Guaranteed Senior Bonds due 2029, issued on September 17, 2024.
- US$ 300,000,000 in 10.875 per cent Guaranteed Senior Bonds due 2029, issued on October 25, 2024.
- US$ 300,000,000 in 10.25 per cent Guaranteed Senior Bonds due 2028, issued on December 03, 2024.
These bonds were collateralized by the shares of VEDL held by subsidiaries of Vedanta Resources Limited (VRL), specifically Twin Star Holdings Ltd and Welter Trading Limited. These encumbrances restricted how these entities could operate or dispose of their assets under the terms of the bond agreements.
Summary of Encumbered Shares
The encumbrance related to these bonds covered a total holding of 1,537,973,924 shares of VEDL, representing 39.33% of the company's equity at the time the restriction was noted by Citicorp.| Detail | Metric |
|---|---|
| Shares Held (Encumbered) | 1,537,973,924 |
| Percentage of Equity | 39.33% |
Broader Context and Future Encumbrances
The announcement clarified that while the encumbrance related to the Bonds has been fully released as of July 17, 2026, Citicorp continues to act as trustee concerning other outstanding bonds issued by Vedanta Resources Finance II plc. These ongoing bonds also involved encumbrances created over the equity shares of VEDL held by Twin Star and Welter, as well as by Vedanta Holdings Mauritius II Limited (VHMLII), a subsidiary of VRL.The release mentioned in this report pertains exclusively to the encumbrances associated with the three specific Bonds listed above. All other encumbrances related to these various outstanding bonds remain subsisting.
Additionally, the entities Vedanta Aluminium Metal Limited, Vedanta Oil and Gas Limited, Vedanta Power Limited, and Vedanta Iron and Steel Limited (collectively referred to as the Demerged Entities) were listed and began trading on June 15, 2026, after being demerged from VEDL. The release of encumbrances over the equity shares of these Demerged Entities under the T&Cs of the Bonds is also effective from July 17, 2026.
VEDL Stock Price Movement
Shares of Vedanta Limited are slipping in live trading, shedding 1.23% to ₹261.60 as of 1:28 PM. The equity traded within a defined range today and recorded substantial activity with nearly 4.95 million shares transacted.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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