Mining major Vedanta Ltd on June 8 said it has pledged a 5.8 percent stake in subsidiary Hindustan Zinc Ltd (HZL) to raise a term loan of Rs 8,000 crore.
The announcement comes around 10 months after Vedanta had pledged a 14.82 percent stake in HZL to secure a long-term loan of Rs 10,000 crore.
In its latest regulatory filing, Vedanta said that the earlier encumbrance, which was created to raise Rs 10,000 crore in August 2021, had been released.
"The earlier encumbrance created by Vedanta aggregating to 64.92 percent of paid-up share capital of HZL, to secure the syndicated term loan facility of Rs 10,000 Cr in the form of pledge (14.82 percent of the paid-up share capital of HZL) and Non-disposal undertaking (NDU) (50.10 percent of the paid-up share capital of HZL) had been released," it said.
"Further, to secure the term loan facility of Rs 8,000 Cr (tied up to take over the aforementioned syndicated long-term facility), Vedanta has created encumbrance in the form of pledge (5.77 percent of the paid-up share capital of HZL) and NDU (50.10 percent of the paid-up share capital of HZL) in respect of its shareholding in HZL," the company added.
Vedanta, notably, holds a 64.9 percent stake in HZL, an erstwhile public sector undertaking. The company has clarified that none of its shareholding in HZL is encumbered for any personal borrowing of any of the promoter or promoter group. "This is an undertaking by Vedanta to continue to retain their current shareholding in HZL, for the comfort of the lenders," it noted.
The exchange filing comes days after Vedanta Resources Chairman Anil Agarwal said the company has a five percent cap in HZL's residual stake sale.
"We are not the buyer, it will come to the market, and the market will buy. We can't buy more than an additional 5 percent stake in the Hindustan Zinc out of the 26 percent," Agarwal told Moneycontrol on May 26.
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