Vedanta Limited — Pledging, 30-10-2025: Pledge/Unpledge

Vedanta Resources Ltd (VRL) has revealed that its subsidiary, Vedanta Holdings Mauritius II Ltd (VHMLII), holding Vedanta Ltd (VEDL) shares, is now a guarantor for VRL's ~$3.1 billion senior bonds (due 2028-2033). This move effectively creates an 'encumbrance' on VHMLII's VEDL shares.

What this means for investors: VHMLII now faces contractual restrictions. It can't easily create more security or sell VEDL shares without meeting specific conditions. If VRL defaults on its bonds, bondholders could potentially influence the sale or control of these VEDL shares.

**Key update:** VRL has clarified that despite these new restrictions, *no formal pledge* of VEDL equity shares by VHMLII has been made *as of this disclosure*. This is a crucial distinction, highlighting potential future risks rather than an immediate change in pledged share status. Investors should keep an eye on VRL's debt management.