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 the repayment of all outstanding dues by the promoters, which boosted sentiment. However, the overhang over the demerger lingered as the National Company Law Tribunal (NCLT) once again postponed the hearing.

Vedanta pledged share release

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.

NCLT postpones Vedanta demerger hearing

Meanwhile, in another update, NCLT once again postponed the hearing on Vedanta's demerger proposal to October 29.

On September 17, the Mumbai bench of NCLT had deferred the hearing on the matter till October 8, and also directed Vedanta as well as the Ministry of Petroleum and Natural Gas (MoPNG) to file written submissions on the matter within five days, according to a PTI report.

Vedanta had filed a scheme of arrangement before the NCLT Mumbai bench covering four group companies - Vedanta Aluminium Metal, Talwandi Sabo Power, Malco Energy, and Vedanta Iron and Steel - along with their shareholders and creditors.

Vedanta share price trend

Vedanta share price traded in a tight range in morning trade today. The large-cap metal stock opened at ₹472.20, slightly lower than the last closing price of ₹472.75 apiece.

It hit the day's high of ₹475.30 and the low of ₹467.50. So far in 2205, Vedanta stock has gained 6%. Meanwhile, in the last one year, Vedanta stock price has dipped 5%.

On a longer time frame, Vedanta has delivered multibagger gains, rising 116% in two years and 287% in five years.

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