Vedanta to sell 2.6% stake in Hindustan Zinc via OFS

Hindustan Zinc stake sale: Mining conglomerate Vedanta Ltd anunced on Tuesday that its board has approved sale of up to 11 crore shares, equivalent to a 2.60 per cent stake in Hindustan Zinc Ltd (HZL), through an offer for sale (OFS).

company did t reveal floor price or date for OFS.

"In a meeting held today, 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 issued and paid-up equity share capital of HZL, by way of an offer for sale through stock exchange mechanism," Vedanta stated in a regulatory filing.

As of end of June quarter, Vedanta held a 64.92 per cent stake in Hindustan Zinc, while government-owned 29.54 per cent.

Vedanta is also planning 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 decreasing reliance on dividends from Vedanta Resources Ltd (VRL).

As of June 30, 2024, Vedanta's net debt stood at Rs 61,324 crore.

For quarter ended June 2024, Vedanta Ltd reported a 36.5 per cent increase in consolidated net profit, amounting to Rs 3,606 crore, compared to Rs 2,640 crore in same period last year. company's consolidated income for April-June period rose to Rs 36,698 crore from Rs 34,279 crore in corresponding period previous year.

Last month, mining giant raised Rs 8,500 crore (over $1 billion) through a Qualified Institutions Placement (QIP) of 19.31 crore equity shares at an issue price of Rs 440 per share.

(With PTI inputs)