The Exchange has received the Disclosures of reasons for encumbrance by promoter of listed companies under Reg. 31(1) read with Regulation 28(3) of SEBI (SAST) Regulations, 2011 on April ....
HINDZINC · price
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Vedanta Limited, the parent company holding 60.71% stake in Hindustan Zinc Limited, has disclosed a new encumbrance on HZL shares. This encumbrance arises from an external commercial borrowing of US$125 million (approximately ₹1,050 crore) from JPMorgan Chase Bank N.A. through GIFT City Branch. As per the facility agreement dated April 14, 2026, Vedanta must maintain at least 50.1% beneficial ownership and control of HZL, and is restricted from creating security over or disposing 50.1% of HZL shares. The new encumbrance covers 2.12 billion shares representing 50.10% of HZL's share capital, held in favor of Axis Trustee Services Limited. Total promoter encumbrance now stands at 91.96% of Vedanta's holding in HZL.
The high level of encumbrance (91.96% of promoter holding) indicates significant financial leverage by Vedanta. Any breach of loan covenants or decline in HZL share price could risk shares being invoked, potentially threatening Vedanta's control over HZL.