Hindustan Zinc Gears Up for Expansion: Non-Convertible Debenture Issuance on the Cards

Hindustan Zinc Limited (HZL), a subsidiary of Vedanta group, has proposed to consider an offer for issuing non-convertible debentures (NCDs). The step is being taken as the company seeks to shore up its balance sheet and finance its current capacity expansion plans. HZL, the largest zinc, lead, and silver producer in India, is likely to become net debt-free by FY26 despite making huge investments in capacity growth. The firm has set a Rs 16,000 crore capacity expansion plan in FY24-27 that involves financing projects across Rajasthan and additions to renewable energy. This proposed NCD issue is part of HZL's plan to leverage its capital structure and finance its growth plans.
Source: Business Standard