Vedanta Ltd

Event overview

• Release of encumbrances on promoter shares following full repayment of facilities (Aug 21, 2026).
• Promoter group includes Twin Star Holdings and Welter Trading.

Key details

• Target: Vedanta Limited.
• Encumbrance type: negative lien on VedL shares.
• Promoter group: Twin Star Holdings and Welter Trading.
• Total encumbered VedL shares: 2,139,794,759 (54.72%) before.
• Total encumbered VedL shares after: 2,139,651,763 (54.72%) encumbered.
• Date of release: August 21, 2026.
• Reasons: full repayment of facilities under three agreements.
• TSHL sold 65,072,990 VedL shares on June 23, 2026, reducing stake to 38.35%.
• Note 2: Demerged entities listed June 15, 2026; encumbrances released July 24, 2026.
• Note 3: Post-event encumbrance details align with promoter-encumbered data.

Encumbrance release details

• Target Company: Vedanta Limited (VEDL).
• Disclosing Party: Kroll Trustee Services (HK) Limited, Agent for lenders; non-promoter.
• Transaction Type: Release of encumbrance on Vedanta Limited shares.
• Pre-Transaction Holding: 2,139,651,763 encumbered shares (54.72%).
• Mode of transaction: Release of encumbrance.
• Date: 21 August 2026.
• Post-Transaction Holding: All encumbrances released; encumbrances Nil.
• Share Capital Context: Equity capital before/after: ₹3,910,388,057.
• Total diluted share capital after: ₹3,910,388,057.

Punnam Manganese Block bid status

• Vedanta declared Successful Bidder for Punnam Manganese Block in Andhra Pradesh under state e-auction.
• Completion per statutory compliances via letter dated August 13, 2026 (received 2:46 PM IST).
• Block spans 152 hectares and is at G4 exploration stage.
• Acquisition to strengthen diversified metals and mining portfolio, boosting domestic manganese supply and reducing imports.
• Strategic impact: expands portfolio and domestic manganese resource availability; no financial value disclosed.

Encumbrance release on promoter shares

• Twin Star Holdings – release of encumbrance on Vedanta Limited shares (1,499,732,868; 38.35%).
• Welter Trading Limited – release of encumbrance on 38,241,056 shares (0.98%).
• Vedanta Holdings Mauritius II Limited – release of encumbrance on 492,820,420 shares (12.60%).
• Favouring entity: Citicorp International Limited.
• Reason: repayment and settlement of December 2024 Bonds Series 2.
• Release date: August 7, 2026.

Rating action

• India Ratings withdraws Vedanta Limited NCD ratings; transferred to Vedanta Aluminium Metal Limited (VAML) due to demerger.

Instruments/ratings

• Vedanta Limited NCD ratings withdrawn; VAML debt rated IND AA+/Stable.

Rating agency

• Agency: India Ratings and Research Private Limited.

Rationale

• Withdrawal follows demerger and transfer of NCDs to VAML.

Material changes

• NCD ratings previously IND AA-/Rating Watch; upgraded in VAML portfolio to IND AA+/Stable.

Date

• Publications date: August 13, 2026.

Release of promoter encumbrances

• Release of encumbrances on Vedanta Limited promoter shares completed, effective August 7, 2026.
• Released by promoter group: Twin Star Holdings Ltd; Welter Trading Limited.
• Vedanta Holdings Mauritius Limited released.
• Vedanta Holdings Mauritius II Limited released.
• Vedanta Netherlands Investments B.V. released.
• Encumbered shares before release: Twin Star 1,499,732,868 (38.35%); Welter 38,241,056 (0.98%).
• Vedanta Holdings Mauritius Limited: 107,342,705 (2.75%).
• Vedanta Holdings Mauritius II Limited: 492,820,420 (12.60%).
• Vedanta Netherlands Investments B.V.: 1,514,714 (0.04%).
• Reason: repayment and discharge of US$500 million facility.
• Favouring entity: Axis Trustee Services Limited as offshore security agent.
• Note 1: ATSL offshore security agent involved.
• Depository non-disposal undertaking over 107,342,705 VHML shares is in release.
• Total promoter holding after release: 2,139,651,763 shares (54.72%).
• Date of release: August 7, 2026.
• Note 2: Demerged entities listed June 15, 2026; encumbrances released Aug 7, 2026.
• Note 3: Post-event holding equals pre-event for existing encumbrances.

Encumbrance release on Vedanta Limited

• Pre-transaction encumbered shares: 2,030,794,344 (51.93%).
• Disclosing party: Citicorp International Limited, trustee for December 2024 Bonds Series 2; not promoter group.
• Mode: Release of encumbrance on Vedanta Limited (VEDL) shares.
• Date of release: 07 August 2026.
• Post-release: encumbrances fully released; Vedanta Limited equity capital unchanged at ₹3,910,388,057.
• Total diluted share capital: not disclosed; equity capital remains ₹3,910,388,057.

Transaction overview

• Target Company: Vedanta Limited.
• Disclosing Party: Axis Trustee Services Limited, offshore security agent; not promoter group.
• Transaction Type: Release of encumbrance on Vedanta Limited shares.
• Pre-Transaction Holding: 2,139,651,763 encumbered shares (54.72%).
• Transaction Details: Encumbrances released: 2,139,651,763 shares (54.72%).
• Post-Transaction Holding: Nil encumbrances and voting rights remain.
• Date of Transaction: 07 August 2026.
• Share Capital Context: Equity capital before/after: 3,910,388,057; diluted capital: 3,910,388,057.

ESG Rating Disclosure

• Vedanta received ESG Rating Rationale for FY 2025-26 from NSE Sustainability.
• Consolidated ESG rating is 55, placed in the Moderate category.
• Vedanta did not engage NSE Sustainability for the evaluation.
• Report prepared independently based on publicly disclosed information.
• Rating methodology is available on NSE's ESG ratings website.
• Email confirming the report was received on Aug 10, 2026.

Release of promoter encumbrances

• Event: Release of encumbrances on Vedanta Limited promoter shares, effective Aug 5, 2026.
• Target company: Vedanta Limited.
• Encumbrance type: negative lien on promoter shares.
• Promoter group: Twin Star Holdings Ltd; Welter Trading Ltd; VHML; VHMLII; VNIBV.
• Lenders/beneficiary: Bank of Maharashtra as Agent for Lenders.
• Reason: facilities up to US$80 million; loan repayment.
• TSHL encumbered: 1,499,732,868 shares (38.35%).
• Welter encumbered: 38,241,056 shares (0.98%).
• VHML encumbered: 107,342,705 shares (2.75%).
• VHMLII encumbered: 492,820,420 shares (12.60%).
• VNIBV encumbered: 1,514,714 shares (0.04%).
• Total encumbered: 2,139,651,763 shares (54.72%).
• Note: TSHL reduced stake to 38.35% on June 23, 2026.
• Post-event promoter stake remains 54.72%.
• Note 2: Demerged Vedanta entities released from encumbrances.