- Saturday, April 20, 2024
By: Shubham Ghosh
HOLDING companies of Vedanta Limited have raised $800 million (£600 million) by pledging shares in the company, Press Trust of India reported citing a stock-exchange filing.
Promoter group firms pledged rupees 242.6 crore (£24 million) or 65.18 per cent shareholding in Vedanta Limited in three-facility agreements to raise the money, a Vedanta Limited’s filing showed.
In the first financing deal, Twin Star Holdings Limited entered into an agreement with Standard Chartered Bank, London, to avail of an aggregate amount of $400 million (£300 million).
In the second, Vedanta Netherlands Investments BV secured $150 million (£112.5 million) from Standard Chartered Bank, London.
In the third facility, Vedanta Resources raised $250 million (£187.5 million) from Standard Chartered Bank, Hong Kong.
“The borrowers and guarantors in the aforesaid Facility Agreements are part of the promoter and promoter group,” Vedanta said in the filing.
As part of the pledge, the promoter group entities are not allowed to create any encumbrance over any assets held by them unless certain conditions are fulfilled, PTI added.
Besides, Vedanta Resources Limited and its subsidiaries are required to retain control over Vedanta Ltd or own more than 50 per cent of the issued equity share capital.
Madison Pacific Trust, in a separate statement, said Vedanta Netherlands Investment BV and Twinstar Holdings have acquired 1.71 per cent and 2.8 per cent of the equity share capital of Vedanta.
Earlier this week, they were looking to purchase up to rupees 17 crore (£1.6 million) equity shares of Vedanta Ltd at an indicative price of rupees 350 per share, valued at rupees 5,950 crore (£595 million).
This comes after the Anil Agarwal-led mining company announced on November 17 that it is considering plans for a complete overhaul of its corporate structure.
