Vedanta Resources Finance II Plc, a subsidiary of Vedanta Resources Limited (VRL), has issued $500 million in 9.125% guaranteed senior bonds due 2032. This bond issuance, completed on October 15, 2025, involves potential encumbrances on a significant portion of Vedanta Limited's equity shares held by promoter group entities.

Key Details of the Bond Issuance

Potential Share Encumbrances

The bond terms involve potential encumbrances on 2,095,867,334 equity shares of Vedanta Limited, representing 53.60% of the company's total shares. These shares are held by promoter group entities, including:

• Twin Star Holdings Limited
• Welter Trading Limited
• Vedanta Holdings Mauritius II Limited

Bond Terms and Conditions

Restrictions on Promoter Group

The promoter group entities are not permitted to create or allow any encumbrances or security interests over their directly held assets unless certain conditions are met.

Share Acquisition and Disposal

Twin Star, Welter, and Vedanta Holdings Mauritius II are restricted in how they can acquire or dispose of Vedanta Limited shares.

Default Scenario

Following an Event of Default, the promoter group entities can only dispose of their assets as specified in the bond terms.

Important Notes

• Citicorp International Limited acts as the trustee for the bondholders.
• No actual pledge has been created over the equity shares as of the disclosure date.
• The obligations will take effect upon execution of a supplemental trust deed, which is to be completed by October 31, 2025.

Implications

This bond issuance and the associated terms could have significant implications for Vedanta Limited's ownership structure and the flexibility of its promoter group. The potential encumbrance of over half of Vedanta Limited's shares suggests a complex financial arrangement that may impact the company's future strategic decisions.

Investors and market watchers should closely monitor how these bond terms might affect Vedanta Limited's operations and corporate governance in the coming years. The restrictions on share transactions and potential encumbrances could influence the company's ability to raise capital or undergo structural changes in the future.

As this is a developing situation, stakeholders should stay informed about any further disclosures or changes to the terms of this bond issuance.

Vedanta subsidiary Hindustan Zinc Limited has announced its financial results for the second quarter of fiscal year 2025-26, showcasing strong performance across key metrics.

Financial Highlights

The company reported a consolidated net profit of ₹2,649 crore for the quarter ended September 30, 2025. Revenue from operations stood at ₹8,282 crore, indicating robust operational performance.

For the half-year period, Hindustan Zinc's financial results were equally impressive:

Segment Performance

Hindustan Zinc operates in two primary segments:

1. Zinc, Lead, and Silver: This segment, which forms the core of the company's business, contributed significantly to the overall revenue.
2. Wind Energy: While a smaller segment, it continues to be part of the company's diversified portfolio.

Dividend Declaration

The Board of Directors has declared an interim dividend of ₹10 per equity share. The total dividend payout amounts to ₹4,225 crore, reflecting the company's strong cash position and commitment to shareholder returns.

Operational Insights

The company's performance demonstrates its resilience in the face of market fluctuations. The robust revenue figures suggest strong demand for zinc, lead, and silver, which are crucial materials for various industries including construction, automotive, and electronics.

Market Position

As a subsidiary of Vedanta, Hindustan Zinc maintains a significant position in the global zinc market. The company's continued strong performance suggests it is well-positioned to capitalize on the demand for base metals, particularly as global infrastructure and manufacturing activities continue to recover and grow.

Conclusion

Hindustan Zinc's Q2 FY26 results demonstrate the company's ability to deliver strong financial performance. With robust revenue growth and healthy profit margins, the company appears well-positioned for sustained growth in the coming quarters.