Mumbai — Vedanta Limited has raised $125 million through an external commercial borrowing (ECB), but the deal comes with strict conditions—most notably a restriction on reducing its stake in subsidiary Hindustan Zinc Limited.
As per the company’s stock exchange filing, the agreement requires Vedanta to maintain at least 50.1 per cent direct ownership in Hindustan Zinc and retain control over the subsidiary until the loan is fully repaid. The company is also prohibited from selling or creating any security against this minimum stake during the tenure of the borrowing.
The loan agreement was signed on April 14 with JPMorgan Chase Bank N.A., acting through its GIFT City branch as the mandated lead arranger, bookrunner, and original lender. Axis Trustee Services Ltd. has been appointed as the agent for the transaction.
Currently, Vedanta—led by industrialist Anil Agarwal—holds a 60.71 per cent stake in Hindustan Zinc, with nearly 92 per cent of that already pledged against existing borrowings.
On the stock market, Vedanta shares were marginally down by about 0.3 per cent on the NSE, in line with the benchmark Nifty 50. Despite the slight dip, the stock has delivered strong returns, rising around 29 per cent so far this year, with gains of over 13 per cent in the past month.
Separately, the company is also grappling with the aftermath of a boiler explosion at its power plant in Chhattisgarh’s Sakti district. The April 14 incident has claimed 20 lives so far, with several workers still undergoing treatment, highlighting serious safety concerns.
With inputs from IANS