Vedanta sold 66.70 million shares or 1.60 percent of total shares in its subsidiary Hindustan Zinc, amounting to Rs. 3,028 Crore. Vedanta sold the shares to institutional investors by way of an accelerated bookbuild process, which is a quick method of issuing securities when a company wants to raise capital quickly.
With a market capitalisation of Rs. 1,78,470 Crore, the stock of Vedanta Limited opened at Rs. 463.60, up 1.02 percent from yesterday’s close, and after opening, it made a high of Rs. 467.60, up 1.89 percent. Additionally, the shares of Hindustan Zinc opened at Rs. 462.40 and made a low of Rs. 451.50, down 7.17 percent
Why Vedanta sold stake in Hindustan Zinc
Vedanta stated that the transaction will help strengthen its balance sheet, which currently carries a high level of debt, and the company remains focused on reducing its debt burden and improving financial flexibility. Further, Vedanta is expected to empower each of the demerged entities to independently pursue their respective growth plans more effectively.
Vedanta Resources, which holds a 56.38 percent stake in Vedanta Limited, is the parent company of the group. Vedanta Limited has nine subsidiaries, with Hindustan Zinc being the only listed one, in which it holds a 63.40 percent stake.
The remaining subsidiaries, such as BALCO, Zinc International, Talwandi Sabo Power, ESL Steel, Ferro Alloy Corporation, Meenakshi Energy, Vedanta Display, and Vedanta Semiconductor, are all unlisted, with Vedanta holding majority or full ownership.
Recently, Vedanta Ltd received strong support for its demerger plan to split into five sector-specific entities, gaining approval from 99.99 percent of shareholders, 99.59 percent of secured creditors, and 99.95 percent of unsecured creditors.
Vedanta Limited is a diversified natural resources company operating in India and globally. It is involved in the exploration and production of oil and gas, and the mining and processing of metals such as zinc, lead, silver, copper, iron ore, and aluminium. The company also has interests in power generation. Vedanta is known for its integrated operations and is a key player in the resource sector.
The company reported a 13.92 percent YoY increase in revenue from Rs. 35,509 Crore in Q4FY24 to Rs. 40,455 Crore in Q4FY25. On a QoQ basis, the company reported an increase of 3.42 percent in revenue from Rs. 39,115 Crore in the previous quarter.
Their Net profit saw an increase of 118.06 percent YoY from Rs. 2,275 Crore to Rs. 4,961 Crore for the same period. On a QoQ basis, the company reported an increase of 1.74 percent in Net profit from Rs. 4,876 Crore in the previous quarter.
Written By Abhishek Das
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