Promoter entities of Vedanta Ltd. have pledged their entire stake in the mining firm to raise funds for the open offer for shares in the Indian unit and to service debt.
The parent firm Vedanta Resources, led by billionaire Anil Agarwal, notified the exchanges on March 16 of the creation of encumbrance over the shares in Vedanta Ltd. held by five of its subsidiaries.
The subsidiaries for which encumbrance has been created are:
- Finsider International: 10.8% stake.
- Westglobe Ltd.: 1.19% stake.
- Welter Trading Ltd.: 1.03% stake.
- Twinstar Holdings Ltd.: 37.11% stake.
- Vedanta Holdings Mauritius II Ltd.: 4.98% stake.
In all, 204.8 crore equity shares of Vedanta Ltd. held by the promoter entities have been encumbered. That's 99.9% of the total promoter stake in Vedanta Ltd.—which stands at 55%.
The encumbrance is linked to $1.2 billion worth of bonds that were issued by Vedanta Resources Finance II Plc. last week. The 8.95% guaranteed senior bonds are due in 2025. Citicorp International Ltd. is the trustee for the holders of the bonds.
The funds raised may be used to acquire shares of its Indian subsidiary Vedanta Ltd.. Any remaining proceeds will be used to service debt of certain entities of the promoter group, it said in the disclosure.
Mining baron Anil Agarwal-led Vedanta Resources, today, also raised the open offer price for buying shares in its Indian unit. It is now offering a price of Rs 235 per share, 4% higher than its current market price.
Shares of Vedanta Ltd. closed 0.06% higher on the Bombay Stock Exchange, in contrast with the BSE Sensex's 0.06% fall.
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