Vedanta Ltd (VEDL), the promoter of Hindustan Zinc Ltd (HZL), recently secured ₹ 2,575 Cr through new debentures.

A key condition for this financing is a 'non-disposal undertaking' on 50.1% of VEDL's HZL shares.

This means VEDL has committed to maintain its 50.1% direct ownership and control in HZL and cannot sell or create new security on these shares until the debentures are repaid.

This serves as a protective covenant for the debenture holders, ensuring VEDL's continued majority stake in HZL and isn't a new pledge of shares that increases the overall encumbered percentage.