Hindustan Zinc Limited's promoter Vedanta Limited has released encumbrances on 20.89 crore equity shares, representing 4.94% of the total share capital, following the prepayment of a facility on June 17, 2026. The encumbrances were created under a Facility Agreement that Vedanta disclosed on July 18, 2024, and were held in favour of Victory XII Pte. Ltd.
All encumbrances under that agreement have been fully released effective June 17, 2026, the date of prepayment. Vedanta stated that the conditions and arrangements under the Facility Agreement are likely to fall within the definition of encumbrance under Chapter V of the SEBI Takeover Regulations, prompting this disclosure.
Prior to the release, Vedanta had 2,32,58,03,748 shares of Hindustan Zinc under encumbrance, amounting to 55.04% of the total share capital. Post-release, the encumbered holding stands at 2,11,68,84,819 shares, or 50.10% of the total share capital.
Vedanta holds 2,56,52,71,353 shares in Hindustan Zinc, equivalent to a 60.71% stake. The remaining 50.10% encumbered shares include other existing encumbrances by way of pledge and non-disposal undertakings created through the depository system for other facilities entered by Vedanta. Disclosures for those encumbrances have been filed separately.
The disclosure was made to BSE Limited and the National Stock Exchange of India on June 19, 2026, under Regulation 31 of the Takeover Regulations read with SEBI's master circular dated February 16, 2023. The Facility Agreement required Vedanta to directly or indirectly hold at least 50.1% of the issued share capital of or voting rights in HZL and to directly or indirectly control HZL. This continuing condition explains why the post-release encumbered holding of 50.10% does not aggregate to the sum of prior encumbered shares and the release event.
Disclaimer: This article is based on company filings submitted to the Bombay Stock Exchange (BSE) and National Stock Exchange of India (NSE) and is for informational purposes only. It does not constitute investment advice or a recommendation. Investors should conduct their own research and consult a qualified financial advisor before making investment decisions.