Vedanta received a credit rating reaffirmation from ICRA Limited on January 02, 2026, maintaining its existing ratings despite the company's ongoing business demerger process. The rating agency published its decision around 04:00 PM IST, providing continuity for the mining and metals conglomerate during a period of significant corporate restructuring.

Credit Rating Details

ICRA Limited reaffirmed Vedanta's credit ratings across multiple categories, maintaining the company's financial standing in the market.

The rating reaffirmation comes at a crucial time as Vedanta undergoes a major corporate transformation through the demerger of its various business segments.

Demerger Process Acknowledgment

ICRA specifically noted the ongoing demerger of Vedanta's businesses into separate standalone listed entities. The rating agency emphasized that despite this significant corporate restructuring, the credit ratings remain unchanged. This decision reflects ICRA's assessment that the demerger process does not currently impact the company's creditworthiness.

The rating agency indicated it will maintain active oversight of the demerger proceedings. ICRA stated it will continue monitoring the development of the demerger process and the associated timelines, with provisions to take appropriate rating actions as required based on future developments.

Regulatory Compliance

Vedanta communicated this rating reaffirmation to both major Indian stock exchanges - BSE Limited and National Stock Exchange of India Limited - in compliance with Regulation 30 and 51 of the SEBI Listing Regulations. The company provided detailed rationale from ICRA, accessible through the rating agency's official documentation.

Market Implications

The rating reaffirmation provides stability for Vedanta's stakeholders during the complex demerger process. By maintaining the ICRA AA/Watch Developing/ICRA A1+ ratings, the company retains its established credit profile while navigating the separation of its diverse business portfolio into independent entities.

The "Watch Developing" component of the rating indicates ICRA's active monitoring stance, reflecting the dynamic nature of the ongoing corporate restructuring while maintaining confidence in the company's current financial position.

Standard Engineering Technology Limited has received another pledge disclosure from its promoter group entity Standard Holdings under SEBI Takeover Code compliance requirements. This separate pledge arrangement involves personal borrowing by the promoter group, distinct from the earlier S2 Engineering Services pledge.

New Pledge Transaction Details

Promoter group entity Standard Holdings, represented by partners Kandula Krishna Veni and Kandula Ramakrishna, has pledged 42,57,144 equity shares of the company on December 31, 2025. The pledge was created with two lenders for a total borrowing amount of ₹27.30 crores for personal use.

Lender-wise Distribution

The pledge arrangement involves two established financial institutions with different borrowing amounts and share allocations.

Standard Holdings Shareholding Structure

The pledged shares represent a significant portion of Standard Holdings' total holding in the company. Standard Holdings holds 46,01,481 equity shares, constituting 2.30% of the company's total share capital.

Security and Valuation Metrics

The pledge arrangement demonstrates strong security cover for the borrowing. The value of pledged shares provides adequate margin for the lenders with a comfortable security ratio.

Regulatory Compliance Framework

The disclosure was made in compliance with SEBI takeover regulations and listing obligations. The company confirmed that the borrowing is for personal use by the promoter and will not benefit the listed company or its subsidiaries.

The pledge does not trigger significant regulatory thresholds as it represents less than 50% of promoter shareholding and less than 20% of total share capital. Both Bajaj Finance Limited and Tata Capital Limited are established financial institutions, ensuring regulatory compliance for the financing structure.