“A subscription settlement dated twenty third December has been entered into between Vedanta Holdings Mauritius Restricted and the opposite promoters of Vedanta Ltd with OCM…Underneath the settlement the issuer shall subject US$ 400,000,000 notes of nominal worth $1 in favour of OCM,” mentioned an announcement by OCM Funding within the BSE Submitting on Tuesday.
Given the character of association beneath the envisaged settlement, a number of of the shares are falling beneath the definition of encumbrance, mentioned Vedanta Restricted.
As per the subscription settlement, a cost has been created on all of the issued shares of the issuer…to safe the duty, the assertion mentioned including that there are specific situations on the promoter group entities to create any safety, promote or switch or dispose any of their shares in Vedanta Ltd held by them.
The promoter entities right here embrace Vedanta Mauritius Restricted, Finsider Worldwide, Westglobe Restricted, Welter Buying and selling Restricted and Twin Star Holdings Restricted. The overall promoter shareholding within the entity is 2,048,618,788 variety of shares with 55.11% holding.
“This is not going to have any impression on the corporate as it is a quite common practise by promoter teams,” mentioned an analyst requesting anonymity.
“It’s one thing known as an encumbrance, which means banks have taken an extra safety in order that there is no such thing as a change in management. For the shares pledged towards the debt taken, an encumbrance is created so there is no such thing as a change in management,” mentioned the analyst.
The corporate on December twenty first had pledged round 50.13% of the entire capital with CitiCorp Worldwide Restricted. This was in relation to the debt raised by Vedanta for US$ 1 billion of 13.87% senior bonds due by 2024.
“The funds raised might be used to fund the tender supply for any and all of Vedanta Assets Restricted’s excellent US$ 900 million of 8.25% bonds due in 2021…and any proceeds shall be used to service debt of VRL or different subsidiaries,” the corporate mentioned in its BSE Submitting.
Vedanta Ltd didn’t reply to the e-mail queries despatched.
On December twenty eighth , Vedanta Holdings Mauritius II, part of Vedanta Restricted’s promoter group purchased round 18.5 crore shares within the Indian listed firm at a value of about Rs. 160/share. This elevated the promoter shareholding in Vedanta Restricted from 50.13% to 55.11%.
On Tuesday, the promoter group entities pledged the 55.11% holding with OCM Verde XI Funding towards a debt of 400 million notes of nominal worth $1 raised.
“The proceeds shall even be used in direction of cost of any charges, prices, and bills in reference to the transaction contemplated,” the corporate mentioned.
This comes two months after the corporate didn’t garner the required variety of shares to delist Indian subsidiary Vedanta.
The overall variety of shares validly tendered by the general public shareholders within the delisting supply is 125.47 crore, which is lower than the minimal variety of shares required to be accepted by the acquirers to ensure that the delisting supply to achieve success, the corporate mentioned in an trade filings. The corporate is now in a cooling off interval and is but to take a name on going for delisting once more.
Shares of Vedanta Ltd dropped 2.2% to Rs 160.15 apiece after the announcement.