Vedanta to sell 3.31% stake in Hindustan Zinc
Vedanta will sell up to 3.31% stake in Hindustan Zinc, or 140 million shares of the company, at a floor price of ₹486 rupees a share, filings from both the companies to the exchanges showed. Vedanta had earlier said that it would sell 2.60% in the zinc-lead producer.
The stake sale through the offer-for-sale will take place on Friday and Monday. The floor price is at a discount of 15% to Wednesday's closing of ₹571.75. Shares of Hindustan Zinc are up nearly 80% so far in 2024, but have lost 14% in a month. Between March and May, the shares had surged nearly 125%.
Vedanta owns nearly 65% in Hindustan Zinc, while another 29.5% is held by the Government of India. In the past, Vedanta has been vocal in acquiring additional stake in the company. It is selling stake in Hindustan Zinc for growth and expansion purposes, and for optimisation of the capital structure of the company, the exchange filing showed. Citigroup Global Markets India and JM Financial Institutional Securities are brokers for the deal.
The board of directors of Hindustan Zinc will meet Tuesday to consider the second interim dividend for the current fiscal year, the company said.
