Vedanta Ltd has approved the sale of up to 67 million equity shares of Hindustan Zinc Limited (HZL), representing 1.59% of its equity share capital, through an Offer for Sale (OFS). The move is aimed at unlocking value, improving liquidity, and strengthening Vedanta’s balance sheet amid ongoing capital requirements.
Vedanta Ltd, one of India’s largest natural resources companies, has announced its decision to divest a 1.59% stake in Hindustan Zinc Limited (HZL) through the Offer for Sale (OFS) route. The sale involves up to 67 million equity shares, reflecting Vedanta’s strategic intent to optimize its portfolio and generate cash flows.
The OFS mechanism will allow institutional and retail investors to participate, ensuring transparency and wider market participation. Analysts view this move as part of Vedanta’s broader capital management strategy, especially given its debt reduction plans and focus on strengthening liquidity.
Key Highlights:
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Stake Sale: Up to 67 million equity shares of HZL.
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Equity Share Capital: Represents 1.59% of Hindustan Zinc’s total equity.
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Route: Offer for Sale (OFS), enabling participation from institutional and retail investors.
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Strategic Objective: Unlock value, improve liquidity, and support debt reduction.
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Market Impact: Expected to enhance free float and trading volumes in HZL stock.
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Future Outlook: Vedanta may consider further stake sales depending on capital requirements.
This divestment underscores Vedanta’s commitment to prudent capital allocation while maintaining its strong
presence in the metals and mining sector.
Sources: Business Standard, Economic Times, Moneycontrol, Reuters.