Vedanta promoters pledge shares to raise Rs 6,000 crore

Holding companies of Vedanta Ltd have raised USD 800 million (about Rs 6,000 crore) by pledging shares in the company, according to a stock exchange filing.

Promoter group firms pledged 242.26 crore or 65.18 per cent shareholding in Vedanta Ltd in three facility agreements to raise the money, a Vedanta Ltd's filing showed.

In the first financing deal, Twin Star Holdings Ltd entered into an agreement with Standard Chartered Bank, London to avail of an aggregate amount of USD 400 million.

In the second, Vedanta Netherlands Investments BV secured USD 150 million from Standard Chartered Bank, London.

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Vedanta Resources in the third facility raised USD 250 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 permitted to create any encumbrance over any assets held by them unless certain conditions are fulfilled.

Also, Vedanta Resources Limited and its subsidiaries are required to retain control over Vedanta Ltd or own more than 50% 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 2.80 per cent of the equity share capital of Vedanta.

Earlier this week, they were looking to purchase up to 17 crore equity shares of Vedanta Ltd at an indicative price of Rs 350 per share, valued at Rs 5,950 crore.

This comes after the Anil Agarwal-led mining company on November 17 announced that it is considering plans for a complete overhaul of its corporate structure.

The firm is evaluating all options including demergers, spin-offs and strategic partnerships, and is looking at listing its aluminium, iron and steel, and oil and gas verticals as separate entities.

A committee of directors has been constituted to evaluate and recommend such options and alternatives to the board.