BAJAJ BROKING
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.
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.
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.
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.
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:
Standard Deviation: Meaning, How To Use and Calculate
14 Dec, 2024 | 5 Min. read
Business Forecasting: Definition, Methods, and Models
14 Dec, 2024 | 8 Min. read
Modern Portfolio Theory (MPT): Definition, Types & How To Use
14 Dec, 2024 | 8 Min. read
ASM & GSM Meaning - List of ASM & GSM Stocks
14 Dec, 2024 | 7 Min. read
Bollinger Bands: Meaning, How To Interpret and Use
14 Dec, 2024 | 7 Min. read
Hedging: Meaning, Types, Risks and Strategie
14 Dec, 2024 | 6 Min. read
Nifty Healthcare Index
14 Dec, 2024 | 1 Min. read
What Is Nifty BeES? A Guide to Its Benefits and Working
14 Dec, 2024 | 6 Min. read
Moving Averages Indicator: Variations & Examples
13 Dec, 2024 | 4 Min. read
Learn Everything About Breakout Trading
13 Dec, 2024 | 8 Min. read
Gold Price in India | Gold Drops 1% After Reaching Five-Week High
13 Dec, 2024 | 39 Min. read
Statement of Account and Demat Account: Meaning & Differences
13 Dec, 2024 | 4 Min. read
RBI Launches ULI: Transforming Loan Access
August 27, 2024 | 4 Min. read
Textile Sector in India
September 20, 2024 | 5 Min. read
List of IPOs with DRHPs Filed
November 30, 2023 | 3 Min. read
Aditya Birla Group
September 28, 2023 | 10 Min. read
Bajaj Housing Finance Ltd IPO: Things Smart Investors Need to Know
September 05, 2024 | 4 Min. read
Budget Stock Ideas 2024-2025 | Stocks to Buy Today
July 24, 2024 | 4 Min. read
IPO Eligibility Criteria : Full Details
March 15, 2024 | 6 Min. read
What Is the Lock-In Period in IPOs?
October 18, 2023 | 6 Min. read
Godfrey Phillips Announces 2:1 Bonus Shares
September 16, 2024 | 7 Min. read
Jindal Group- A Comprehensive Analysis
September 27, 2024 | 7 Min. read
Level up your stock market experience: Download the Bajaj Broking App for effortless investing and trading