Shares of Vedanta Limited and Hindustan Zinc Limited (HZL) were trading higher on Friday morning following a regulatory disclosure on promoter share encumbrance. According to reports from The Hindu BusinessLine, as of 11.22 am, Vedanta was up ₹4.80, or 1.74 per cent, at ₹280.90 on the NSE, against a previous close of ₹276.10. HZL shares were up ₹11.30, or 2.14 per cent, at ₹540.00, against a previous close of ₹528.70. Trading volumes stood at 72.36 lakh shares for Vedanta and 25.40 lakh shares for HZL.
The disclosure relates to a corporate guarantee Vedanta provided on June 30 in favour of IDBI Trusteeship Services Limited, securing a ₹1,624 crore facility availed by its subsidiary Ferro Alloys Corporation Limited (FACOR) from a consortium of lenders led by IDBI Bank. As reported by The Hindu BusinessLine, under the facility terms, Vedanta must maintain a minimum 50.1 per cent shareholding in HZL until the loan is repaid, a covenant SEBI regulations classify as an 'encumbrance'.
The cumulative effect of this and eight prior encumbrance events means 90.67 per cent of Vedanta's total promoter shareholding in HZL is now encumbered in some form, according to Annexure II of the filing, against a total promoter holding of 60.71 per cent in the company. According to reports from The Hindu BusinessLine, the disclosure reveals three pledge releases on HZL shares dated September 12, 2023, December 30, 2024, and July 11, 2025, totalling roughly 3.1 per cent of share capital in favour of SBICAP Trustee Company that were executed through the depository.
