Vedanta has reported a 36.5% rise in consolidated net profit at Rs 3,606 crore for the quarter ended June 2024. | Photo: Reuters
Mining giant Vedanta on Wednesday said it has increased the size of its offer for sale of Hindustan Zinc and will now sell a 3.31 per cent stake in the company, representing up to 14 million shares.
On Tuesday, Vedanta’s board of directors approved the sale of up to 11 million shares or 2.60 per cent stake in Hindustan Zinc through an offer for sale (OFS).
“The duly authorized Committee of Directors of Vedanta Ltd, at its meeting held on August 14, 2024, has approved sale of up to 14,00,00,000 equity shares of Hindustan Zinc Ltd (HZL), representing 3.31 per cent of the issued and paid-up share capital of HZL, by way of an offer for sale,” Vedanta said in a filing to BSE.
At Wednesday’s closing price of Rs 572.95 apiece on BSE, the sale of 14 million HZL shares will fetch Vedanta Rs 8,021 crore.
With 11 million shares, the amount would have been Rs 6,302 crore.
At the end of the June quarter, Vedanta held 64.92 per cent of HZL shares, while the government held 29.54 per cent.
Vedanta plans to spin off its aluminium, oil and gas, power, base metals and iron and steel businesses into separate listed entities.
This demerger is aimed at reducing Vedanta Resources Ltd (VRL)’s refinancing risks and dividend dependency.
As of June 30, 2024, Vedanta’s net debt stood at Rs 61,324 crore.
Vedanta reported a 36.5 per cent rise in consolidated net profit at Rs 3,606 crore for the quarter ended June 2024.
The company had posted a net profit of Rs 2,640 crore in the same period last year. Revenue rose to Rs 36,698 crore from Rs 34,279 crore.
Last month, the mining conglomerate raised Rs 8,500 crore (over USD 1 billion) through Qualified Institutional Placement (QIP) of 19.31 million equity shares at an issue price of Rs 440 per share.
(Only the headline and image of this report may have been reworked by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First published: August 14, 2024 | 6:04 pm IS
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