From Zinc to Zing—Vedanta Boosts Balance Sheet with ₹3,028 Cr Sale

Image Source: The Economic Times

Vedanta Ltd has raised ₹3,028 crore by offloading a 1.6% stake in Hindustan Zinc Ltd (HZL) in open market transactions as a strategic move to improve its financial muscle. The issue proceeds will be used to de-leverage Vedanta's balance sheet as a part of the company's ongoing efforts to reduce debt and improve financial flexibility.

Transaction Summary:

Sold Stake: 1.6% in Hindustan Zinc Ltd
Amount Raised: ₹3,028 crore
Interest from Buyers: Ongoing demand from institutional buyers, market sources claim
Holding After the Sale: Vedanta still retains a majority interest in HZL

Why It Matters:

The sale is a part of Vedanta's long-term plan of monetizing non-core businesses and streamlining operations
Analysts view the sale as a timely gesture towards repayment of debt, especially ahead of impending bond maturities
The company has been exploring different options for raising capital, including asset sales and internal restructuring

Market Reaction:

Vedanta Ltd shares saw modest gains at the outset of trading, with Hindustan Zinc shares remaining steady
Brokerage firms expect the proceeds to ease near-term liquidity stress and help credit rating stability

Sources: Moneycontrol, Economic Times, Business Standard