Vedanta encumbers Hindustan Zinc shares for ₹5,000 crore debenture issue

Vedanta Limited has revised its disclosure to stock exchanges on August 26, 2025, concerning the encumbrance of equity shares in its subsidiary, Hindustan Zinc Limited (HZL). This update stems from an email received from BSE Limited regarding a previous disclosure on June 05, 2025. The encumbrance is linked to the approval of unsecured, listed, rated, non-convertible, redeemable Debentures totaling up to ₹5,000 crore, issued on a private placement basis, each with a face value of ₹1,00,000.

Axis Trustee Services Limited has been appointed as the debenture trustee, with a Debenture Trust Deed (DTD) executed on June 03, 2025. This DTD mandates Vedanta to remain the legal and beneficial owner of 50.1% of HZL's share capital (on a fully diluted basis) and retain direct control over HZL. Vedanta is also restricted from creating new security or disposing of this 50.1% of HZL’s issued share capital or voting rights until the debentures are fully redeemed.

This arrangement brings the total promoter shareholding encumbered to 90.32% of Vedanta's holding in HZL, representing 50.10% of HZL's total share capital. The disclosure is in accordance with SEBI's Master Circular dated February 16, 2023, and Regulation 31 of the Takeover Regulations.