Vedanta Resources Limited has made a comprehensive regulatory disclosure regarding the creation of encumbrance over equity shares of Vedanta Limited held by its subsidiaries. The disclosure, made under Regulation 31 of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, pertains to a significant financing arrangement involving multiple subsidiary entities and overseas lenders.

Facility Agreement Details

The encumbrance arises from a facility agreement dated December 30, 2025, for facilities aggregating up to US$ 80,000,000. The agreement involves Vedanta Resources Limited as the borrower, multiple overseas lenders, and Bank of Maharashtra IFSC Banking Unit acting as agent for the benefit of the lenders.

Encumbered Shareholdings

The encumbrance covers shares held by five subsidiaries of Vedanta Resources Limited, representing a substantial portion of Vedanta Limited's equity capital. The total encumbered shareholding amounts to 2,204,724,753 shares, constituting 56.38% of the total share capital.

Nature of Encumbrance and Facility Terms

The facility agreement establishes several key restrictions and obligations on the subsidiary entities. A negative lien has been created on the shares of Vedanta Limited held or to be held by the obligors, including Twin Star Holdings Ltd., Vedanta Holdings Mauritius II Limited, and Welter Trading Limited.

The arrangement includes specific provisions that the obligors are not permitted to create any encumbrance over the shares directly held by them or to be acquired by them in Vedanta Limited. Additionally, Vedanta Resources Limited and its direct or indirect subsidiaries, collectively referred to as the VRL Group, are required to retain control over Vedanta Limited or directly or indirectly own at least 50.1% of the issued equity share capital.

Facility Utilization and Purpose

According to the regulatory disclosure, the borrowed amount under the facility agreement will be applied towards specific purposes outlined in the facility terms:

Regulatory Compliance and Disclosure Requirements

The company has clarified that no pledge has been created by Vedanta Resources Limited or its subsidiaries over the equity shares of Vedanta Limited in relation to the facilities as on the date of disclosure. The encumbrance represents 99.99% of the total promoter shareholding and exceeds both the 50% threshold of promoter shareholding and the 20% threshold of total share capital, triggering the disclosure requirements under SEBI regulations.

The disclosure references previous facility agreements and notes that encumbrances have been created due to the nature of conditions and arrangements mentioned in such facility agreements, with disclosures filed from time to time in accordance with regulatory requirements. The company has made similar disclosures on multiple occasions throughout 2024 and 2025, indicating ongoing financing arrangements within the group structure.

Vedanta has experienced a notable decline in its dividend yield rankings, dropping to seventh position among India's top dividend-paying stocks based on December 31, 2025 closing prices, according to a recent analysis by SBI Securities. This represents a significant shift in the dividend yield landscape, with lesser-known companies now occupying the top positions.

Vedanta's Declining Dividend Performance

Vedanta's dividend yield for FY25 stands at 7.2%, marking a decline from 8.8% recorded as of October 31, 2025. The company previously held the second position in SBI Securities' November 3, 2025 report, trailing only behind Premco Global. The current yield represents a substantial decrease from the company's FY23 dividend yield of 16.8%.

Despite the declining yield, Vedanta shares have rallied 35.00% over the past year, which contributes to the lower dividend yield calculation as strong stock price performance can reduce yield percentages.

New Leaders in Dividend Yield Rankings

Multibase India has emerged as the surprise leader with an exceptional dividend yield of 24.8% for FY25. This represents a dramatic improvement from 1.4% in FY24 and 0.9% in FY23. The company, which specializes in specialty and intermediate chemicals for consumer and industrial applications, has a market capitalization of ₹270.57 crores on BSE.

Multibase India's impressive yield was supported by an interim dividend of ₹53.00 per share distributed in November, representing a substantial payout compared to previous dividends.

Complete Top 10 Dividend Yield Rankings

The remaining positions in the top 10 list include established companies across various sectors:

Other Notable High-Yield Stocks

Several widely followed stocks maintain relatively high dividend yields outside the top 10:

• ONGC: 5.1%
• REC: 5.0%
• Quess Corp: 4.9%
• Hindustan Zinc: 4.7%
• Power Finance Corporation (PFC): 4.4%
• GAIL: 4.4%
• NMDC: 4.0%
• Tata Consultancy Services: 3.9%
• HCL Technologies: 3.7%
• ITC: 3.6%
• Oracle Financial Services: 3.4%

Analysis Methodology

SBI Securities calculated dividend yields based on December 31, 2025 closing prices, considering only companies that have consistently paid dividends over the last three financial years. The analysis highlights how dividend yields can fluctuate due to stock price movements, with strong rallies potentially reducing yield percentages even when absolute dividend payments remain stable.