Why Vedanta Just Sold Shares Worth ₹3,000 Crore—And What It Means

Vedanta Ltd is set to sell 1.6% of its stake in Hindustan Zinc Ltd (HZL) through a block deal valued at approximately ₹3,018 crore. The transaction involves the sale of 66.7 million shares at a floor price of ₹452.50 per share, which is about 7.5% lower than HZL’s closing price on June 17.

 

Key Highlights:

The move comes as Hindustan Zinc’s board approved a ₹12,000 crore investment to double its zinc, lead, and silver production capacity over the next three years. The expansion includes a new integrated smelter at Debari and upgrades to mining and milling operations.

 

Interestingly, Vedanta is also set to receive ₹2,679 crore in dividends from HZL this fiscal, thanks to its majority stake. The government holds over 25% in the company, while LIC and foreign investors make up most of the remaining float.

 

This sale is seen as part of Vedanta’s broader capital strategy, possibly to manage debt or fund other ventures.

 

Source: Times of India, CNBCTV18, The Hindu Business Line, Moneycontrol