GLAS Agency (Hong Kong) Limited has disclosed the creation of an encumbrance over 56.38% of the equity shares of Vedanta Aluminium Metal Limited held by promoter group entities. The filing, submitted to BSE Limited and National Stock Exchange of India Limited on 15 July 2026, details the encumbrance in relation to $1.75 billion of bonds issued by Vedanta Resources Finance II Plc. The disclosure is made under Regulation 29(1) read with Regulation 29(4) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

The encumbrance affects 2,20,47,24,753 shares, representing 56.38% of the total share capital of Vedanta Aluminium Metal Limited. These shares are held by Twin Star Holdings Limited, Welter Trading Limited, and Vedanta Holdings Mauritius II Limited, which are subsidiaries of Vedanta Resources Limited. GLAS clarified that while the contractual restrictions fall within the meaning of "encumbrance" under the Takeover Regulations, no pledge has been created over the equity shares as of the date of the disclosure.

The bonds backing this arrangement include US$ 500,000,000 7.000% Guaranteed Senior Bonds due 2032, US$ 700,000,000 7.375% Guaranteed Senior Bonds due 2034, and US$ 550,000,000 7.750% Guaranteed Senior Bonds due 2037. Principal Trust Deeds were executed on 13 July 2026 between GLAS, the Issuer, and Vedanta Resources Limited. Supplemental Trust Deeds involving the promoter group entities are to be executed in accordance with the timelines specified in the Principal Trust Deeds.

Terms and conditions of the bonds impose specific restrictions on the Promoter Group Entities. These include prohibitions on creating encumbrances over directly held assets unless certain conditions are met, and requirements for the Vedanta Resources Group to retain control over Vedanta Aluminium Metal Limited. Specifically, the group must directly or indirectly own at least 50.1% of the issued equity share capital of the company. In the event of a default, the disposal of assets by the promoter group is restricted to specified circumstances.

The table below summarizes the shareholding details disclosed in the filing:

The obligations related to the encumbrance will come into effect upon the execution of the relevant Supplemental Trust Deed. GLAS Agency (Hong Kong) Limited stated it holds no equity shares or voting rights in its personal capacity and made the disclosure solely in its role as security trustee for the bondholders.

At its Annual General Meeting, vedanta iron & steel witnessed a landmark announcement as the Chairman outlined plans to dramatically scale up the company's annual production capacity. The Chairman revealed intentions to grow output from the existing four million tonnes to 15 million tonnes annually, marking a significant strategic development for the company.

Capacity Expansion at a Glance

The proposed expansion represents a substantial increase in production scale. The key details of the announcement are summarised below:

Strategic Production Scale-Up

The Chairman's announcement at the AGM underscores the company's intent to substantially grow its steel manufacturing footprint. Moving from four million tonnes to 15 million tonnes annually would represent a nearly fourfold increase in production capacity. The disclosure was made directly to shareholders at the AGM, reflecting the significance of the planned expansion to the company's overall strategic direction.