Vedanta Limited’s stocks are in the spotlight today, as Union Bank of India has released a pledge on 56.38% of the company’s shares, indicating a move towards the financial stability of the mining giant. The release was accompanied by the full payment of the dues by Vedanta’s promoters, which positively influenced the investor mood.
In an exchange filing, Vedanta announced that Union Bank of India has released a pledge on 2,204,724,753 equity shares, representing a 56.38% stake in Vedanta Limited. The pledged shares were held by subsidiaries of Vedanta Resources Limited (VRL), the London-headquartered parent company of Vedanta.
According to the filing, Twin Star Holdings (the borrower), along with Vedanta Resources Limited and Welter Trading Limited as guarantors, had entered into a $150 million facility agreement with Union Bank of India, DIFC Branch, Dubai. As a result, an encumbrance had been created over Vedanta’s shares held by VRL subsidiaries.
Vedanta confirmed that all outstanding dues under this facility have now been fully repaid, and consequently, all encumbrances created under the agreement have been released.
The company confirmed that there had been no direct pledge made by any of the promoter group entities over Vedanta Limited's equity shares with this facility.
This development was interpreted as a positive step towards the promoter group's deleveraging efforts and would probably calm down the investors' concern about the risks associated with debt.
While the pledge release lifted sentiment, uncertainty around Vedanta’s demerger continues to weigh on the stock. The NCLT Mumbai Bench has once again deferred the hearing to October 29, 2025, after earlier postponing the October 8 session.
The proposed demerger covers Vedanta Aluminium Metal, Talwandi Sabo Power, Malco Energy, and Vedanta Iron and Steel, along with their respective shareholders and creditors.
At the press time, Vedanta’s stock is trading at Rs. 478.75 with an increase of 1.35%. So far in 2025, Vedanta has gained around 6%, though it remains 5% lower year-on-year.
The stock has produced a return of 116% over the past two years and an impressive 287% over the last five years, demonstrating its resilience over periods of volatility.
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The release of pledged shares is an important development for Vedanta’s promoters to reduce leverage and restore investors' confidence. Getting certainty on NCLT demerger approval remains fundamental to value unlocking for shareholders. Some analysts even believe the demerger will allow Vedanta to operate a leaner business and attract new investors.