Vedanta Limited announced securing a $125 million external commercial borrowing deal with JPMorgan Chase Bank N.A. on April 14. The agreement includes conditions such as maintaining a majority stake in subsidiary Hindustan Zinc Limited until the loan is repaid. Axis Trustee Services Ltd. has been appointed as the deal’s agent as per the stock exchange filing.
Vedanta is mandated to retain at least 50.1% direct ownership in Hindustan Zinc Limited until the loan is fully settled. The company must also maintain direct control over the subsidiary during this period. Additionally, Vedanta is restricted from creating any security on or selling its 50.1% stake in Hindustan Zinc until the borrowing is completely repaid.
Presently, Vedanta, led by Anil Agarwal, holds a 60.71% stake in Hindustan Zinc, with nearly 92% pledged against existing loans. Despite this news, Vedanta shares were trading slightly lower on the NSE while the Nifty benchmark rose by a similar margin. The stock has shown significant gains of approximately 29% this year, with a 6.45% increase in the last five days. Over a longer period, the stock has delivered around 13% returns to investors in the last month.
The tragic incident at the Vedanta Power Plant in Chhattisgarh’s Sakti district resulted in a death toll of 20 from a boiler explosion on April 14. Fifteen workers are still receiving treatment for injuries sustained in the accident. The incident, occurring at 2:33 p.m., has deeply impacted the industrial area of Chhattisgarh.
