BAJAJ BROKING

Notification
No new Notification messages
Inventurus Knowledge Solutions IPO is Open!
Apply for the Inventurus Knowledge Solutions IPO through UPI in just minutes.
Open a Free Demat Account
Pay ZERO maintenance charges for the first year, get free stock picks daily, and more.
Trade Now, Pay Later with up to 4x
Never miss a good trading opportunity due to low funds with our MTF feature.
Track Market Movers Instantly
Stay updated with real-time data. Get insights at your fingertips.

Vedanta to Sell 2.6% Stake in Hindustan Zinc, Shares React

Listen to our Podcast: Grow your wealth and keep it secure.

0:00 / 0:00

Synopsis:

Vedanta plans to sell a 2.6% stake in Hindustan Zinc via OFS, impacting share prices. Hindustan Zinc fell 4.57% to ₹586.35, while Vedanta dropped 2% to ₹422.7. Vedanta owns 64.92% of HZL and is planning business demergers.

Vedanta - Hindustan Zinc News Today

Metals and mining giant Vedanta Ltd has announced its decision to divest a portion of its equity in Hindustan Zinc Ltd through an Offer for Sale (OFS) mechanism. The company plans to sell up to 11 crore Hindustan Zinc shares, representing 2.6% of the equity share capital.

Details of the Offer for Sale

The decision was approved by Vedanta’s Committee of Directors on August 13, 2024. While the exact date for the OFS has not been disclosed, the announcement has already influenced the market.

Market Reaction

Following the news, Hindustan Zinc share price saw a significant decline, closing 4.59% lower at ₹586 on the NSE. Vedanta's share price also reacted negatively, ending the day 1.65% lower at ₹424.95 on the NSE.

Vedanta's Stake and Future Plans

As of the June 2024 quarter, Vedanta held a 64.92% stake in Hindustan Zinc, while the Indian government retained a 29.54% share. The planned sale is part of Vedanta’s broader strategy to streamline its operations and reduce financial risk.

The company has announced plans to demerge its aluminium, oil and gas, power, base metals, and iron and steel businesses into separate listed entities. This demerger is expected to reduce refinancing risks and decrease the company's reliance on dividends from Vedanta Resources Ltd (VRL).

Expected Dividend Payout

In related news, Hindustan Zinc is anticipated to declare a special dividend of ₹6,000 crore to its shareholders this month. Last month, the National Company Law Tribunal (NCLT) approved the transfer of ₹10,383 crore from Hindustan Zinc’s general reserves to retained earnings.

Should the dividend payout occur, Vedanta, which owns a 64.92% stake, would receive ₹3,895 crore, which it may use to reduce its debt burden.

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing. This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

For All Disclaimers Click Here: https://bit.ly/3Tcsfuc

Share this article: 

Read More Blogs

Our Secure Trading Platforms

Level up your stock market experience: Download the Bajaj Broking App for effortless investing and trading

Bajaj Broking App Download

8 Lacs+ Users

icon-with-text

4.4+ App Rating

icon-with-text

4 Languages

icon-with-text

₹4700+ Cr MTF Book

icon-with-text