Hindustan Zinc stake sale: Mining giant Vedanta Ltd on Tuesday announced that its board of directors has approved the sale of up to 11 million shares, equivalent to a 2.60 per cent stake in Hindustan Zinc Ltd (HZL), through an offer for sale (OFS).
The company did not disclose the minimum price or the date of the OFS.
“At a meeting held today, the duly authorised Committee of Directors of Vedanta Ltd approved sale of up to 11,00,00,000 equity shares of Hindustan Zinc Ltd, representing 2.60 per cent of the issued and paid-up share capital of HZL, by way of an offer for sale through the mechanism of stock exchange,” Vedanta said in a regulatory filing.
At the end of the June quarter, Vedanta held a 64.92 per cent stake in Hindustan Zinc, while the government held 29.54 per cent.
Vedanta also plans to demerge its aluminium, oil and gas, power, base metals and iron and steel businesses into separate listed entities. This move is aimed at reducing refinancing risks and reducing dependence on dividends from Vedanta Resources Ltd (VRL).
As of June 30, 2024, Vedanta’s net debt stood at Rs 61,324 crore.
For the quarter ended June 2024, Vedanta Ltd reported a 36.5 per cent rise in consolidated net profit at Rs 3,606 crore, compared to Rs 2,640 crore in the same period last year. The company’s consolidated revenue for the April-June period rose to Rs 36,698 crore from Rs 34,279 crore in the corresponding period last year.
Last month, the mining giant raised Rs 8,500 crore (over $1 billion) through a qualified institutional placement (QIP) of 19.31 million equity shares at an issue price of Rs 440 per share.
(With PTI inputs)
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