Vedanta Aluminium Metal Limited Announces Creation of Encumbrances Under Facility Agreement

Vedanta Aluminium Metal Limited Announces Creation of Encumbrances Under Facility Agreement​

Vedanta Aluminium Metal Limited (VAML) has reported a significant development regarding the creation of encumbrances over its equity shares. This action follows a facility agreement dated July 15, 2026, involving a total commitment of US$ 1,000,000,000.

The transaction was executed among several parties, including Twin Star Holdings Ltd (TSHL) as the borrower, and Vedanta Resources Limited (VRL), Vedanta Holdings Mauritius II Limited (VHMLII), and Welter Trading Limited as guarantors. Citigroup Global Markets Asia Limited and Standard Chartered Bank served as arrangers, while Citibank, N.A., Hong Kong and Standard Chartered Bank acted as the original lenders. GLAS Agency (Hong Kong) Limited serves as the agent and security agent for the facility.

Key Terms of the Facility Agreement​

Under the terms of the agreement, specific conditions have been established regarding the ownership and security of VAML shares:

1. No Obligor, including TSHL, VRL, VHMLII, and Welter, is permitted to create or maintain any security or quasi-security over the shares of VAML.
2. Members of the VRL group are prohibited from creating or permitting any security or quasi-security over shares owned by them in an Obligor that holds shares in VAML.
3. The VRL group is required to maintain control over VAML, which includes directly or indirectly owning at least 50.1% of the issued equity share capital of VAML.

These conditions collectively constitute the encumbrances as defined under relevant takeover regulations.

Shareholding and Encumbrance Details​

The creation of these encumbrances involves a total of 2,204,724,753 shares, representing 56.38% of the total equity share capital. The equity share listed capital for Vedanta Aluminium Metal Limited is reported at ₹ 3,910,388,057, representing 3,910,388,057 equity shares of ₹ 1 each.

The following table outlines the specific details of the encumbrance:

Context of Existing Encumbrances​

The report notes that GLAS Agency (Hong Kong) Limited already holds an existing encumbrance over shares of VAML. This prior arrangement was established following the issuance of guaranteed senior bonds by Vedanta Resources Finance II PLC, a subsidiary of VRL.

As the current encumbrances are placed on the same shares of VAML as those previously disclosed, the shareholding details before and after this specific transaction remain unchanged at 56.38%.

VAML Stock Price Movement​

Vedanta Aluminium Metal Limited shares on Friday slipped by 3.02% to settle at ₹442.2. The stock saw a total turnover of 7.51 million shares as it retreated from the day's high of ₹457.6.