IDBI Trusteeship Holds 50.1% Encumbrance Over Hindustan Zinc Shares as Collateral for Vedanta Group Financing
IDBI Trusteeship Services Limited, acting in its capacity as Security Trustee, holds a substantial encumbrance over equity shares of Hindustan Zinc Limited (HZL). This holding is linked to a financial assistance facility provided to Ferro Alloys Corporation Limited (FACOR), a subsidiary of Vedanta Limited.The trustees are managing the collateral related to the facility agreement executed between FACOR and a consortium of banks. The total amount of the financial assistance is INR 1624,00,00,000/-.
As per the terms of the Facility Agreement dated June 30, 2026, Vedanta Limited has committed to providing a corporate guarantee in favor of the Security Trustee. Furthermore, until the full settlement of the facility, the Company is required to directly or indirectly maintain a minimum shareholding of 50.1% in HZL.
The acquisition by IDBI Trusteeship Services Limited was registered as the creation of an encumbrance under the Facility Agreement. The details regarding the collateralized holding and the resulting capital structure are as follows:
| Detail | Value |
|---|---|
| Security Trustee/Acquirer | IDBI Trusteeship Services Limited |
| Target Company | Hindustan Zinc Limited |
| Shares in Encumbrance (as of June 30, 2026) | 2,116,884,819 |
| Percentage Holding | 50.10% |
| Mode of Acquisition | Creation of Encumbrance under the Facility Agreement dated June 30, 2026 |
The acquisition was recorded following the execution of the Facility Agreement and has directly impacted the capital structure of HZL. Before this event, the equity share capital and total voting capital of Hindustan Zinc Limited stood at 4,225,319,000 shares, aggregating to Rs. 8,450,638,000.
Following the encumbrance creation, the total diluted share/voting capital of HZL remains unchanged at 4,225,319,000 equity shares, aggregating to Rs. 8,450,638,000.
HINDZINC Stock Price Movement
Shares of Hindustan Zinc Limited are edging higher to ₹538.25 as of 10:52 AM today, rallying by 1.81%. The stock is experiencing robust intraday activity, trading on a volume of 2.25 million shares.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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