Vedanta Resources Limited has fully released encumbrances over the equity shares of Vedanta Limited held by its promoter group entities, effective July 17, 2026. The release follows the complete repayment and settlement of bonds issued by Vedanta Resources Finance II plc, a subsidiary of Vedanta Resources Limited. This action removes restrictions previously imposed on the shares of Twin Star Holdings Ltd and Welter Trading Limited, which had been encumbered under the terms of the bond issuances totaling US$ 1.5 billion.

The disclosure, submitted to BSE Limited and National Stock Exchange of India Limited on July 21, 2026, confirms that the encumbrances created under the terms and conditions of the bonds have been discharged. The bonds included US$ 900,000,000 10.875 per cent Guaranteed Senior Bonds due 2029 issued in September 2024, US$ 300,000,000 10.875 per cent Guaranteed Senior Bonds due 2029 issued in October 2024, and US$ 300,000,000 10.25 per cent Guaranteed Senior Bonds due 2028 issued in December 2024.

Release of Encumbrance Details

The release of encumbrance specifically impacts the shareholding of Twin Star Holdings Ltd and Welter Trading Limited. Prior to this release, these entities were subject to restrictions regarding the creation of security over assets and the disposal of shares. Following the settlement, the encumbrance over 1,499,732,868 shares held by Twin Star Holdings Ltd and 38,241,056 shares held by Welter Trading Limited has been removed.

The table below details the status of the promoter group entities following the release of encumbrance:

Regulatory Context and Demerged Entities

The filing notes that the release of encumbrance also extends to the equity shares of the demerged entities of Vedanta Limited, namely Vedanta Aluminium Metal Limited, Vedanta Oil and Gas Limited, Vedanta Power Limited, and Vedanta Iron and Steel Limited. These entities were listed on the stock exchanges on June 15, 2026. Consequently, any encumbrances subsisting over the shares of these demerged entities under the bond terms have also been fully released effective July 17, 2026.

Vedanta Resources Limited stated that the disclosure is made under Regulation 31 of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The company confirmed that the obligations related to the encumbrance have been discharged upon the execution of the relevant settlement documents.

Vedanta has received a demand from the Directorate General of Hydrocarbons (DGH) for about USD 35 million plus interest, stemming from a dispute over an OALP (Open Acreage Licensing Policy) block extension. The demand adds a regulatory dimension to the company's ongoing upstream oil and gas activities under the OALP framework.

Demand Details

The following table summarizes the key parameters of the demand received by Vedanta from the DGH:

Background on the Dispute

The demand is linked to a dispute concerning the extension of an OALP block in which Vedanta holds an interest. The OALP framework, administered by the DGH under India's Hydrocarbon Exploration and Licensing Policy (HELP), governs the terms under which companies explore and produce hydrocarbons in designated acreage. Disputes related to block extensions under this policy can arise from disagreements over contractual obligations, timelines, or compliance requirements. The specific block in question and the precise basis for the DGH's demand have not been detailed in the available information.

Key Highlights

• Demanding Authority: DGH (Directorate General of Hydrocarbons)
• Demand Quantum: About USD 35 million plus interest
• Trigger: OALP block extension dispute
• Sector: Upstream oil and gas

The receipt of this demand represents a notable development for Vedanta's oil and gas segment. The company has not provided additional disclosures regarding its intended response or the current status of the dispute based on the available data.