Hindustan Zinc Limited — Pledging, 08-07-2026: Pledge/Unpledge

Vedanta Limited has entered a new financial commitment, providing a corporate guarantee for an INR 1,624 Cr loan taken by its subsidiary, Ferro Alloys Corporation (FACOR). As a condition for this loan, Vedanta must maintain at least a 50.1% stake in Hindustan Zinc (HZL) directly or indirectly until the facility is fully settled. This covenant is classified as an 'encumbrance' on HZL shares. For investors, this means a significant portion of Vedanta's HZL holding is now tied to FACOR's debt repayment and restricts Vedanta's flexibility to reduce its stake below 50.1%.