Vedanta to Sell 2.6% Stake in Hindustan Zinc via OFS

New Delhi, Aug 13 (PTI) Mining conglomerate Vedanta Ltd on Tuesday said that its board has approved the sale of up to 11 crore shares or 2.60 per cent stake in Hindustan Zinc through an offer for sale (OFS).

The company did not disclose the details of the floor price and the date of OFS.

"The duly authorised Committee of Directors of Vedanta Ltd ('Committee'), at its meeting held today on August 13, 2024, has approved the sale of up to 11,00,00,000 equity shares of Hindustan Zinc Ltd (HZL), representing 2.60 per cent of the issued and paid-up equity share capital of HZL, by way of an offer for sale through the stock exchange mechanism," Vedanta said in a regulatory filing.

At the end of the June quarter, Vedanta owned 64.92 per cent stake in Hindustan Zinc while the government had 29.54 per cent.

Vedanta plans to demerge its aluminium, oil and gas, power, base metals, and iron and steel businesses into separate listed entities.

This demerger aims to reduce refinancing risks and reliance on dividends from Vedanta Resources Ltd (VRL).

As on June 30, 2024, Vedanta's net debt stood at Rs 61,324 crore.

Vedanta Ltd had reported a 36.5 per cent rise in consolidated net profit at Rs 3,606 crore for the quarter ended June 2024.

The company had posted a net profit of Rs 2,640 crore in the year-ago period.

The consolidated income of the company in the April-June period rose to Rs 36,698 crore from Rs 34,279 crore in the year-ago period, according to an exchange filing.

Last month, the mining conglomerate raised Rs 8,500 crore (over USD 1 billion) through Qualified Institutions Placement (QIP) of 19.31 crore equity shares at an issue price of Rs 440 per share.