Mining and metals major Vedanta confirms paring stake in subsidiary Hindustan Zinc on Wednesday, June 18, in a bid to deleverage and strengthen its balance sheet.
Several media reports yesterday indicated that Vedanta, the promoter of Hindustan Zinc, was looking to pare its stake in the company, with the deal size initially pegged at ₹7,500 crore, according to CNBC-TV 18. However, today morning, 7.2 crore shares, representing 1.71% equity, worth ₹3,323 crore changed hands at ₹460.5 per share via block deals, the business news channel said.
Hindustan Zinc block deal details
While the sellers in Hindustan Zinc block deal were not known immediately, Vedanta later today disclosed selling a 1.6% stake in the company.
Vedanta Limited announces that it has sold 66.7 million shares in Hindustan Zinc Limited, a subsidiary of the company, to institutional investors by way of an accelerated bookbuild process, representing 1.6% of the issued ordinary share capital, the Anil Agarwal-led company said in a filing today.
The total sale amounts to ₹3,028 crore, which Vedanta said would help strengthen its balance sheet. The large-cap metal company also stands to gain ₹2,679.54 crore from the recently-announced ₹10 by subsidiary Hindustan Zinc”>dividend of ₹10 by subsidiary Hindustan Zinc.
“As we actively progress towards the demerger of Vedanta into sector-focused entities across diverse verticals, this capital raise will help de-leverage the balance sheet and enhance financial flexibility, enabling each of the demerged entities to pursue their independent growth plans,” the company added.
Vedanta is looking to demerge its business into five units, namely Vedanta (the parent company), Vedanta Aluminum Metal, Vedanta Power, Vedanta Iron and Steel and Vedanta Oil and Gas.
This transaction reflects continued investor confidence in Vedanta’s strategic direction, particularly the progress made over recent quarters in delivering record production, driving cost efficiencies, and execution of its deleveraging and demerger initiatives aimed at long-term value creation for all stakeholders, it added.
Block deal impact
Following the block deal, Hindustan Zinc share price tumbled as much as 6.4% in intraday deals today to the day’s low of ₹455.35 apiece.
As of 1.15 pm, Hindustan Zinc stock was trading 5.68% down at ₹458.75 per share.
Meanwhile, Vedanta shares were trading flat with a positive bias following the announcement of the interim dividend. The company announced the first interim dividend for fiscal 2026 at ₹7 apiece.
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