The promoters of mining giant Vedanta, a subsidiary of London-based Vedanta Resources (VRL), are unable to sell or dispose of their shares in the Indian company due to a previously created levy. The move is gaining importance as Vedanta had pledged nearly 95% of its holdings in Hindustan Zinc (HZL), including a recent one three days ago.
A charge was levied on all issued shares of Vedanta, following an earlier agreement signed in 2020-21 with the promoter entities of the Vedanta Group. The charges include restrictions such as selling, transferring or otherwise disposing of shares held by the promoters or to be acquired by them in Vedanta, OCM Verde XI Investments, a Vedanta lender, said in a stock market update.
OCM Verde is an entity under investment manager Oaktree Capital.
Pursuant to two deeds – global and one Indian deed dated May 23, 2023 – a charge created on all issued shares of FICL has been released in favor of OCM. However, the levy on the issued shares of the Vedanta Holdings Mauritius and Westglobe, and the restrictions on the promoter group entities with regard to creating any security, or selling, leasing, transferring or otherwise disposing of their shares in VEDL, remain in effect. to exist. be in effect, it said.
On May 23, a worldwide deed of release was executed among the promoters (OCM, Finsider International Company (FICL), Westglobe, Richter Holding and Vedanta Holdings Mauritius II). However, the Indian deed was executed on the same day between Axis Bank, Axis Trustee Services, FICL, Westglobe and Vedanta Holdings Mauritius II).
The move becomes more significant as as of Thursday, Vedanta had pledged nearly 95% of its holdings in Hindustan Zinc (HZL), including a recent one three days ago. This is an increase from 87.59% shares pledged to raise funds. As of March 31, 2023, 240.27 crore shares or 87.59% of Vedanta’s stake in HZL had been pledged with promoters holding 274.31 crore or 64.92% of HZL’s total 422.53 crore shares in had hands.
The move becomes more significant as as of Thursday, Vedanta had pledged nearly 95% of its holdings in Hindustan Zinc (HZL), including a recent one three days ago.
Vedanta has a 64.92% stake in Hindustan Zinc (HZL), which was privatized more than two decades ago, while the Government of India holds a 29.54% stake. VRL and other initiators have a 68.1% interest in Vedanta.
As of Thursday, Vedanta had pledged nearly 95% of its holdings in Hindustan Zinc (HZL), including a recent one three days ago. This is an increase from 87.59% shares pledged to raise funds. As of March 31, 2023, 240.27 crore shares or 87.59% of Vedanta’s stake in HZL had been pledged with promoters holding 274.31 crore or 64.92% of HZL’s total 422.53 crore shares in had hands.
