Mining and metals major Vedanta confirms paring stake in subsidiary Hindustan Zinc on Wednesday, June 18, in a bid to deleverage and strengthen its balance sheet.
Several media reports yesterday indicated that Vedanta, the promoter of Hindustan Zinc, was looking to pare its stake in the company, with the deal size initially pegged at ₹7,500 crore, according to CNBC-TV 18. However, today morning, 7.2 crore shares, representing 1.71% equity, worth ₹3,323 crore changed hands at ₹460.5 per share via block deals, the business news channel said.
While the sellers were not known then, Vedanta later today disclosed selling a 1.6% stake in the company.
Vedanta Limited announces that it has sold 66.7 million shares in Hindustan Zinc Limited, a subsidiary of the company, to institutional investors by way of an accelerated bookbuild process, representing 1.6% of the issued ordinary share capital, the Anil Agarwal-led company said in a filing today.
The total sale amounts to ₹3,028 crore, which Vedanta said would help strengthen its balance sheet.
“As we actively progress towards the demerger of Vedanta into sector-focused entities across diverse verticals, this capital raise will help de-leverage the balance sheet and enhance financial flexibility, enabling each of the demerged entities to pursue their independent growth plans,” the company added.
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