Vedanta promoters can sell, dispose of shares as lender lifts restriction

Vedanta chairman Anil Aggarwal is confident of managing the debt.

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26 Aug, 2025 12:21

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The promoters of Vedanta Ltd can sell or dispose of their shares in the mining company after a charge created by its lender, OCM Verde Xi Investments, has been released, exchange filings showed on Thursday. The move comes as the the mining major looks to shore up its cashflow amid debt obligations.

Promoter Anil Agarwal had pledged the mining company's stake from 2020 onwards in a bid to raise funds.  According to the filing, the promoters had pledged 63.71 percent of shares.

Following which, Vedanta group promoter entities - Vedanta Holdings Mauritius, Finsider International Company (FICL), Vedanta Resources and Westglobe - were barred from selling, transferring or disposing issued shares held in  Vedanta Ltd due to the OCM charge.

OCM Verde is an entity under asset manager Oaktree Capital.

On February 7, Vedanta Holdings Mauritius II Limited (VHML II) executed a global released deed with OCM and an Indian release deed with Axis Trustee Services Limited, according to the filing uploaded on February 8.  The release will allow the promoters to sell or dispose the shares.

The development will boost the company's efforts to increase cashflow amid mounting debt situation. As of December 31, 2023, the company's net debt stands at Rs 62,493 crore. The company recently restructured its debt worth $3.2 billion and the move was approved by more than 97 percent of its bondholders.

The mining conglomerate is also looking to sell its non-core assets. Through the sale of iron ore mines and steel plant, the company looks to repay its lenders, according to reports.

In the October-December quarter, Vedanta posted an 18 percent fall in net profit burdened by finance costs. Its finance costs surged more than 50 percent to Rs 2,417 crore due to higher borrowing costs.

Aggarwal, however, remains confident of managing the debt. The company has raised $1.3 billion through loans and is also betting on dividends, royalty and cash raised from the sale of non-core assets to repay lenders.