Vedanta Power Limited Announces Creation of Encumbrances Under US$ 1 Billion Facility Agreement

Vedanta Power Limited Announces Creation of Encumbrances Under US$ 1 Billion Facility Agreement​

Vedanta Power Limited, formerly known as Talwandi Sabo Power Limited (VPL), has disclosed the creation of encumbrances over its equity shares following a significant financial facility agreement. The transaction involves an agreement dated July 15, 2026, for a total commitment aggregating US$ 1,000,000,000.

The arrangement was executed between 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 acted as arrangers, while Citibank, N.A., Hong Kong and Standard Chartered Bank served as the original lenders.

Key Terms of the Facility Agreement​

Under the terms of the agreement, several specific conditions and restrictions regarding the shares of VPL have been established:

1. No Obligor, which includes TSHL, VRL, VHMLII, and Welter, shall create or permit to subsist any security or quasi-security over the shares of VPL.
2. No member of the VRL group (including direct and indirect subsidiaries) is permitted to create or allow any security or quasi-security over the shares they own in an Obligor that holds shares in VPL.
3. In the event VPL becomes a Material Subsidiary of VRL, the VRL group is required to maintain control over VPL or continue to hold at least 50.1% of the issued equity share capital of VPL.

The arrangements and conditions within this agreement are categorized as encumbrances. The disclosure confirms that these encumbrances involve a total of 2,204,724,753 shares, representing 56.38% of the total share/voting capital.

Shareholding Structure and Data​

The data regarding the holdings before and after the creation of the encumbrance remains unchanged as the new encumbrances are on the same shares of VPL as existing disclosures.


The announcement clarifies that GLAS Agency (Hong Kong) Limited acts as the agent under the Facility Agreement for the benefit of the lenders. The company continues to maintain a listed capital of ₹ 3,910,388,057, representing 3,910,388,057 equity shares of ₹ 1 each.

VEDPOWER Stock Price Movement​

Vedanta Power Limited shares tumbled 3.92% on Friday to settle at ₹37.79, reflecting a sharp decline of ₹1.54 from the previous close. The stock hit a significant milestone by plunging to its 52-week low amid a trading volume of 37.96 million shares.