Vedanta Resources Secures $125 Mn Facility Agreement

Vedanta Resources (VRL) signed a facility agreement worth USD 125 million, according to an exchange filing on Tuesday. The agreement, signed on 10 October 2024, names VRL as the borrower, with Standard Chartered Bank Singapore serving as the arranger, agent, and lender.

The purpose of the agreement is to fund the cash flow requirements of the VRL Group. Although encumbrances have been created over shares of the Indian-listed entity, Vedanta, the filing clarified that there would be no direct impact on the management or control of Vedanta.

The company emphasised that Vedanta does not hold any shareholding in the entities involved in the agreement. Additionally, no liabilities have been imposed on the listed entity. As of 20 July, promoters of Vedanta Ltd. held a 56.38 per cent stake, with 99.99 per cent of those shares currently pledged, according to BSE data.

Recently, Vedanta was in the spotlight after postponing and subsequently cancelling its board meeting to consider a fourth interim dividend for shareholders. No new date for the meeting has been announced.

Shares of Vedanta closed 1.8 per cent lower on Friday at Rs 490. Despite this, the stock has risen 90 per cent in 2024, marking its best calendar year performance since 2021, when its value doubled.