Vedanta Limited has seen the release of encumbrances over 51.93% of its total share capital held by the promoter group. The restrictions were lifted following the complete repayment of senior bonds issued by a subsidiary of Vedanta Resources Limited.

The disclosure was filed under Regulation 29(1) read with Regulation 29(4) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The release became effective on September 17, 2026, removing security interests created to secure debt obligations.

Bond Repayment Details

The encumbrances were originally created to secure two tranches of guaranteed senior bonds issued by Vedanta Resources Finance II PLC:

• $550 million at 9.475% coupon, due 2030
• $550 million at 9.850% coupon, due 2033

Citicorp International Limited acted as trustee for the bondholders. The terms and conditions required that subsidiaries Twin Star Holdings Limited, Welter Trading Limited, and Vedanta Holdings Mauritius II Limited could not create further encumbrances or dispose of shares without specific approvals. Full settlement of these bonds triggered the automatic release of these covenants.

Promoter Holding Structure

The release applies to shares held by three key entities within the Vedanta Resources Limited group. The table below details the holdings affected by this regulatory filing.

Twin Star Holdings Limited reduced its stake from 40.02% to 38.35% following a sale of 65,072,990 shares on June 23, 2026. This transaction occurred prior to the current bond repayment event.

Demerged Entities Impact

The release of encumbrances also extends to equity shares in four demerged entities: Vedanta Aluminium Metal Limited, Vedanta Oil and Gas Limited, Vedanta Power Limited, and Vedanta Iron and Steel Limited. These entities commenced trading on Indian stock exchanges on June 15, 2026.

What the Numbers Show

The data reveals a significant reduction in promoter leverage constraints. With the $1.1 billion bond obligation fully settled, the promoter group no longer faces disposal restrictions on nearly 52% of the company's equity. However, Note 3 of the filing indicates that other encumbrances may still subsist on the shareholding due to previous facility agreements linked to other outstanding bonds, suggesting that while this specific debt burden is removed, broader capital structure constraints remain.

GLAS Agency (Hong Kong) Limited has placed a claim on 56.38% of the shares in Vedanta Aluminium Metal Limited, following a $400 million bond issuance by its parent group.

Vedanta Aluminium Metal Limited disclosed the creation of an encumbrance over promoter group shares on September 18, 2026. The regulatory filing relates to debt instruments issued by Vedanta Resources Finance II PLC and specifically covers equity shares held by subsidiaries in Vedanta Aluminium Metal Limited and four other listed Indian subsidiaries.

The London-based parent company, Vedanta Resources Limited (VRL), reported the encumbrance under Regulation 29(1) read with Regulation 29(4) of the SEBI Takeover Regulations. This disclosure supplements previous filings made in July 2026 regarding original bonds issued earlier in the year.

Bond Issuance Details

Vedanta Resources Finance II PLC issued three series of guaranteed senior bonds on September 16, 2026. These tap issues were consolidated with original bonds issued in June 2026. The new issuance includes:

• $125 million 7.000% Guaranteed Senior Bonds due 2032, consolidated with $500 million 7.000% Original Bonds
• $50 million 7.375% Guaranteed Senior Bonds due 2034, consolidated with $700 million 7.375% Original Bonds
• $225 million 7.750% Guaranteed Senior Bonds due 2037, consolidated with $550 million 7.750% Original Bonds

GLAS Agency (Hong Kong) Limited acts as the security trustee for these bonds. The trust deeds impose specific conditions on the promoter group entities regarding asset encumbrances and share disposals.

Shareholding Impact

The encumbrance affects shares held by five promoter entities in Vedanta Aluminium Metal Limited. Twin Star Holdings Ltd holds the largest stake among them at 40.02%. The total promoter holding in Vedanta Aluminium Metal Limited stands at 56.38%.

VRL clarified that no pledge was created over the equity shares for these tap bonds. Instead, the encumbrance arises from covenants restricting asset disposal and requiring VRL to retain control or own at least 50.1% of Vedanta Aluminium Metal Limited's equity.

What the Numbers Show

The disclosure reveals that 99.99% of the promoter group's total shareholding in Vedanta Aluminium Metal Limited is already encumbered. This high level of encumbrance stems from existing facility agreements and the new bond covenants, indicating significant structural constraints on the promoter group's ability to freely dispose of assets without meeting specific conditions.

Use of Proceeds

The proceeds from the tap bonds are intended to repay outstanding bonds, including accrued interest, and to pay transaction costs. This refinancing activity aligns with the company's broader debt management strategy across its international holdings.