Shares of Vedanta jumped almost 5 percent while those of Hindustan Zinc fell 2 percent in intraday trade on BSE on August 31 after Vedanta informed about the creation of encumbrance over the equity shares of its subsidiary Hindustan Zinc.
In a regulatory filing on August 31, Vedanta said it had tied up a long-term syndicated loan facility for Rs 10,000 crore with State Bank of India as facility agent and SBICAP Trustee Company Limited as the security trustee with door to door maturity of 7 years.
"State Bank of India has given a commitment of Rs 5,000 crore as a lender. The loan will increase the company’s average debt maturity profile and improve liquidity ratios as near-term maturities are replaced by a long-term loan," said Hindustan Zinc in the filing.
Vedanta has also given a non-disposal undertaking in respect of its shareholding in Hindustan Zinc to 50.1 percent of the paid-up share capital of Hindustan Zinc which are not pledged to secure the Facility, the BSE filing added.Shares of Vedanta traded 2.33 percent up at Rs 131.80 while those of Hindustan Zinc was 1.25 percent down at Rs 226 on BSE at 11:55 hours.