Vedanta Promoter Group Creates Encumbrance on 56.38% Stake in Vedanta Limited to Secure $80 Million Facility

Mumbai, January 2, 2026 – Vedanta Limited witnessed a significant promoter-level financial action after Vedanta Resources Limited and its key overseas subsidiaries created an encumbrance over a substantial portion of their equity holding in the company as part of a new overseas financing arrangement.
The encumbrance has been created in connection with facilities aggregating up to $80 million, executed on December 30, 2025, involving Vedanta Resources Limited as the borrower and multiple group entities holding shares in Vedanta Limited.

Promoter Shareholding and Encumbrance Details​

The encumbrance covers equity shares held through five promoter group entities, collectively accounting for 56.38 percent of Vedanta Limited’s total equity share capital. Post the transaction, nearly the entire promoter holding stands encumbered through structured covenants linked to the facility.

Promoter Entities Covered​

The encumbrance structure is in the nature of a negative lien and non-disposal undertaking, rather than a direct pledge of shares. As of the reporting date, no pledge has been created over the Vedanta Limited equity shares.

Key Conditions Linked to the Arrangement​

Under the terms of the facility:

• The promoter entities are restricted from creating any further encumbrance on the covered shares.
• The promoter group is required to retain management control and maintain a minimum 50.1 percent ownership in Vedanta Limited at all times.
• The encumbrance is enforced through contractual restrictions tied to the financing agreement.

The shares have been encumbered in favour of Bank of Maharashtra IFSC Banking Unit, acting for the benefit of overseas lenders participating in the facility.

Utilisation of Borrowed Funds​

Vedanta Resources Limited has clarified that proceeds from the borrowing will be utilised exclusively for overseas obligations, including:

• Partial repayment and servicing of intercompany loans within the group.
• Payment of interest, fees, and transaction-related costs under the financing documents.

The company has also confirmed that no proceeds from the facility will be routed to India.

Promoter Control Remains Intact​

Despite the high level of encumbrance, Vedanta Resources Limited has stated that promoter control over Vedanta Limited remains unchanged. The transaction does not involve any dilution of equity or transfer of ownership, and the promoter group continues to retain a majority stake in the company.

About Vedanta Limited​

Vedanta Limited is one of India’s largest diversified natural resources companies with operations spanning zinc, aluminium, oil and gas, iron ore, steel, copper, and power. The company is listed on both BSE and NSE and forms the core operating entity of the Vedanta Group, with a strong presence across domestic and international markets.

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