Vedanta's promoter has raised $125 million by pledging shares of the listed company. Vedanta Resources, the promoter entity of Anil Agarwal-owned mining company Vedanta Limited, has signed a $125 million facility agreement. According to an exchange filing released on Tuesday, Vedanta Resources, a non-listed, promoter entity, is the nominated entity under this facility. Standard Chartered Bank Singapore Limited is the agent and lending bank.

Why pledge shares- The filing further states that this money will be used for working capital and repaying loans.

This decision will not affect the company's shares. Vedanta Limited does not have any shareholding in any of the entities included in the facility agreement and it will not have any direct impact on the management or control of the listed company. As per the agreement, the shares of the Indian listed unit have been affected, but no liability has been imposed on Vedanta Limited. According to data available on BSE, as of July 20, the promoters of Vedanta Limited held 56.38% stake in the listed company, of which 99.99% is currently pledged. Vedanta was recently in the news when the company first postponed and then cancelled its board meeting to consider the fourth interim dividend. But there has been no announcement of the next date of dividend. Why do the promoters of the company pledge shares? What is the impact on the shares- Companies raise money from time to time. One way to raise money or capital is to pledge shares. In this way, promoters pledge their shares, in simple words, it means that the promoters take a bank loan, offer shares in a company as collateral. Promoters often do this because it is seen as an effective way to monetize their shareholding without giving up control.