Vedanta Ltd on Wednesday said it has pledged 5.77 per cent stake in Hindustan Zinc Ltd for a term loan of Rs 8,000 crore.
The announcement comes days after the Cabinet Committee on Economic Affairs (CCEA) approved the government's 29.5 per cent stake sale in Vedanta group firm Hindustan Zinc Ltd (HZL).
''...to secure the term loan facility of Rs 8,000 crore...VEDL (Vedanta Ltd) has created encumbrance in the form of Pledge (5.77 per cent of the paid-up share capital of HZL) and NDU (non-disposal undertaking) (50.10 per cent of the paid-up share capital of HZL) in respect of its shareholding in HZL,'' the metals and mining major said in a filing to BSE.
The company further said the earlier encumbrance created by Vedanta aggregating to 64.92 per cent of paid-up share capital of Hindustan Zinc, to secure the syndicated term loan facility of Rs 10,000 crore in the form of pledge -- 14.82 per cent of the paid-up share capital of HZL -- and non-disposal undertaking -- 50.10 per cent stake -- had been released.
''...none of the shareholding of VEDL (Vedanta Ltd) in HZL is encumbered for any personal borrowing of any of the promoter/promoter group of HZL and this is an undertaking by VEDL to continue to retain their current shareholding in HZL, for the comfort of the lenders of VEDL,'' the filing added.
Hindustan Zinc was a government-owned company till 2002. In April 2002, the government offloaded 26 per cent stake in HZL to Sterlite Opportunities and Ventures Ltd for Rs 445 crore -- giving Vedanta group management control in HZL.
Vedanta group later bought 20 per cent from the market and another 18.92 per cent from the government in November 2003, raising its ownership in Hindustan Zinc to 64.92 per cent.
(With PTI inputs)
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