Key Points of Vedanta Promoters Offer Share Pledges:
- Vedanta Ltd’s promoter group firms have raised USD 800 million by pledging shares in the company.
- The funds were raised across three facility agreements, with the promoter group entities pledging 65.18% of the company’s shareholding.
- Twin Star Holdings Ltd received an aggregate amount of USD 400 million from Standard Chartered Bank in London under the first financing deal.
- Vedanta Netherlands Investments BV secured USD 150 million from Standard Chartered Bank, London, while Vedanta Resources raised USD 250 million from Standard Chartered Bank, Hong Kong.
- The borrowers and guarantors in the Facility Agreements are part of the promoter and promoter group, and they are not allowed to create any encumbrance over their assets unless specific conditions are met.
- Vedanta Resources Limited and its subsidiaries are required to retain control over Vedanta Ltd or own over 50% of the issued equity share capital.
- Vedanta Netherlands Investment BV and Twin Star Holdings have acquired 1.71% and 2.80% of the equity share capital of Vedanta, respectively.
- Vedanta is exploring plans for a complete overhaul of its corporate structure, including demergers, spin-offs, and strategic partnerships, and is considering listing its aluminium, iron and steel, and oil and gas verticals as separate entities.
Details of Vedanta Promoters Offer Share Pledges:
Promoter group companies of Vedanta Ltd have successfully raised USD 800 million (approximately Rs 6,000 crore) by pledging shares in the company. According to a recent stock exchange filing, Vedanta Ltd’s promoter group entities pledged 242.26 crores or 65.18% of the company’s shareholding across three facility agreements to raise the funds.
Under the first financing deal, Twin Star Holdings Ltd entered into an agreement with Standard Chartered Bank in London to receive an aggregate amount of USD 400 million. Meanwhile, Vedanta Netherlands Investments BV secured USD 150 million from Standard Chartered Bank, London, and Vedanta Resources raised USD 250 million from Standard Chartered Bank, Hong Kong under the second and third facilities, respectively.
In the filing, Vedanta stated that the borrowers and guarantors in the aforementioned Facility Agreements are part of the promoter and promoter group. As part of the pledge, these entities are not allowed to create any encumbrance over their assets unless specific conditions are met.
Additionally, Vedanta Resources Limited and its subsidiaries are required to retain control over Vedanta Ltd or own over 50% of the issued equity share capital.
In a separate statement, Madison Pacific Trust revealed that Vedanta Netherlands Investment BV and Twin Star Holdings have acquired 1.71% and 2.80% of the equity share capital of Vedanta, respectively.
Earlier this week, these entities were planning to purchase up to 17 crore equity shares of Vedanta Ltd at an indicative price of Rs 350 per share, valued at Rs 5,950 crore.
The recent development comes after the Anil Agarwal-led mining company announced on November 17 that it is exploring plans for a complete overhaul of its corporate structure.
Vedanta is currently evaluating all options, including demergers, spin-offs, and strategic partnerships, and is considering listing its aluminium, iron and steel, and oil and gas verticals as separate entities. To evaluate and recommend such options and alternatives to the board, the company has set up a committee of directors.
About Vedanta:
With its primary activities in iron ore, gold, and aluminium mines in Goa, Karnataka, Rajasthan, and Odisha, Vedanta Limited is an Indian multinational mining corporation with its headquarters in Mumbai, India.
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