The Exchange has received the disclosure under Regulation 29(1) of SEBI (Substantial Acquisition of Shares & Takeovers) Regulations, 2011 for Madison Pacific Trust Ltd
VEDL · price
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Awaiting price reaction for this filing.
Madison Pacific Trust Limited, acting as agent for a group of lenders, has disclosed creation of an encumbrance (pledge/lien) over 2,204,724,753 shares of Vedanta Limited, which represents 56.38% of the company's total share capital. This encumbrance is linked to a new Facilities Agreement dated 24 June 2025 for borrowings of up to US$ 600 million (US$ 380 million committed, with an option to increase by US$ 220 million), where Vedanta Resources Limited (VRL) is the borrower and its subsidiaries — Twin Star Holdings, Welter, and Vedanta Holdings Mauritius II — are obligors. The deal includes a negative lien on the VEDL shares, meaning no further encumbrances can be created on them. VRL and its group are required to maintain at least 50.1% ownership in Vedanta. Importantly, an encumbrance on these same shares already existed from a prior facility agreement dated 17 April 2025, so the total encumbered quantity remains unchanged at 56.38%.
This is a negative signal for retail investors — Vedanta's promoter (VRL) has further leveraged its majority stake in the Indian listed entity to raise external debt. With 56.38% of shares already encumbered, any default or covenant breach by VRL could trigger forced selling of Vedanta shares, putting downward pressure on the stock. Shareholders should watch VRL's debt-servicing health closely.