Vedanta Resources encumbers 56.38% of Vedanta Iron & Steel shares

Vedanta Resources Limited has disclosed the creation of an encumbrance over 56.38% of the equity shares of Vedanta Iron and Steel Limited held by its direct and indirect subsidiaries. The disclosure follows a facility agreement dated July 20, 2026, involving a total maximum commitment of US$ 2,250,000,000. The encumbrance affects 2,204,724,753 shares, representing a significant portion of the promoter group's holding in the company.

The facility agreement was executed among Twin Star Holdings Ltd. as the borrower, Vedanta Resources Limited, Vedanta Holdings Mauritius II Limited, and Welter Trading Limited as guarantors, and a consortium of international banks acting as arrangers and lenders. GLAS Agency (Hong Kong) Limited serves as the agent and security agent. The commitment of the original lenders stands at US$ 1,545,000,000, with an increase commitment of up to US$ 705,000,000 available under the agreement.

Terms of the Facility Agreement

Pursuant to the agreement, the Vedanta Resources group is subject to specific conditions termed as "Encumbrances" under the Takeover Regulations. These include prohibitions on creating security or quasi-security over the shares of Vedanta Iron and Steel Limited and requirements for the group to retain control or own at least 50.1% of the issued equity share capital. The disclosure notes that no pledge has been created over the shares, but the nature of the conditions falls within the definition of encumbrance provided under Chapter V of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

Shareholding Details

The encumbrance covers shares held by five promoter group entities. The table below details the shareholding and the percentage of total share capital encumbered for each entity as of July 22, 2026.

Promoter Entity	Shares Encumbered	% of Total Share Capital
Twin Star Holdings Ltd.	1,564,805,858	40.02
Welter Trading Limited	38,241,056	0.98
Vedanta Holdings Mauritius Limited	107,342,705	2.75
Vedanta Holdings Mauritius II Limited	492,820,420	12.60
Vedanta Netherlands Investments B.V.	1,514,714	0.04
Total	2,204,724,753	56.38

The disclosure was submitted to the stock exchanges under Regulation 31 read with SEBI's Master circular dated February 16, 2023. The funds borrowed under the facility agreement are intended for the repayment of existing financial indebtedness of the Vedanta Resources Group, payment of fees and expenses, and general corporate purposes, with restrictions on the use of proceeds for thermal coal infrastructure or remittance to India.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+1.15%	-2.99%	-8.84%	-12.05%	-12.05%	-12.05%

Vedanta Aluminium Metal Limited reported its highest-ever quarterly aluminium production of 632 KT in Q1FY27, reflecting a 5% increase year-on-year and a 3% rise quarter-on-quarter. The company also achieved its highest-ever value-added production at 389 KT, which grew 14% YoY and 4% QoQ, underscoring its focus on product mix enhancement and market alignment.

The growth in aluminium production was driven by volumes from the new smelter, augmented by the operational efficiency of existing lines. Alumina production stood at 826 KT, surging 41% YoY due to higher volumes from expansion, though it declined 6% QoQ due to unplanned shutdowns. Power sales from BALCO reached 520 Million Units, up 21% YoY.

Operational Performance

The company’s Jharsuguda facility produced 464 KT of aluminium, while BALCO contributed 168 KT. BALCO’s output rose 17% YoY, including 24 KT production from the new smelter comprising trial runs. Progress at the BALCO expansion remains steady, with management focusing on operational stability as capacity scales up. The ramp-up is on track for full capacity utilization by Q4.

Particulars (In '000 tonnes)	1Q FY27	1Q FY26	% Change	4Q FY26	% Change
Aluminium Production	632	605	5%	613	3%
Jharsuguda	464	460	1%	460	1%
BALCO	168	144	17%	153	10%
Alumina Production	826	587	41%	882	-6%
Value Added Production	389	342	14%	373	4%
Power Sales: BALCO (in MU)	520	431	21%	524	-1%

Strategic Developments

Vedanta Aluminium Metal Limited secured key regulatory clearances during the quarter. The Ministry of Environment, Forest and Climate Change (MoEF&CC) granted Environment Clearance and Stage II Forest Clearance for the Sijimali Bauxite Block. Additionally, the Mining Lease for the Kuraloi (A) North Coal Block was executed, and Mine Opening Permission was obtained in June.

The figures reported cover the full quarter ended June 30, 2026, notwithstanding the demerger of Vedanta which became effective from May 1, 2026.