Vedanta share price in focus as Union Bank releases pledge on 56.38% stake

Shares of metal and mining major Vedanta Limited traded on a volatile note in Thursday's trading session (October 9) amid mixed cues.

In a positive development, Union Bank of India released a pledge on a 56.38% stake following repayment of all outstanding dues by the promoters, boosting sentiment. However, the overhang over the demerger lingered as the National Company Law Tribunal (NCLT) once again postponed the hearing.

According to an exchange filing today, PSU lender Union Bank of India released a pledge on 2,204,724,753 shares (56.38% stake) of Vedanta Limited, held by the subsidiaries of Vedanta Resources Limited (VRL).

Twin Star Holdings (borrower), Vedanta Resources Limited and Welter Trading Limited as Guarantors entered into a facility agreement with Union Bank of India, DIFC Branch, Dubai for $150,000,000. As a result, there was the creation of encumbrance over the equity shares of Vedanta held by the subsidiaries of VRL.

All outstanding dues under the facility agreement have been fully paid, and hence all encumbrances created pursuant to the facility agreement have been released, as per the filing.

“It is clarified that no pledge had been created by any of the promoter group entities over the equity shares of Vedanta Limited in relation to the facility agreement,” the filing added.

More to come…

Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.

Download the Mint app and read premium stories