Vedanta Approves 2.6% Stake Sale In Hindustan Zinc Via OFS
The details of the floor price and date were, however, not disclosed.
Vedanta Ltd.'s committee of directors approved on Tuesday the sale of up to 11 crore shares, or a 2.6% stake, in Hindustan Zinc Ltd., through an offer for sale, according to its statement to the exchanges.
The details of the floor price and date were, however, not disclosed. As of June, promoter Vedanta held a 64.92% stake in Hindustan Zinc.
Minority shareholders — the general public — hold a little over 5.5% in the company, with the rest being held by Anil Agarwal's Vedanta as promoter, and the Government of India as public shareholder.
Vedanta has also received nod from BSE and the National Stock Exchange on its plans to demerge its aluminium, oil & gas, power, steel and metal businesses into separate listed entities. The company will continue to operate Hindustan Zinc and its display and semiconductor manufacturing units. The demerger will help simplify Vedanta’s corporate structure by creating independent businesses.
The company's first-quarter net profit rose, beating analysts' estimates. This was on the back of lower input commodity prices and a tax write back of Rs 735 crore. Net profit of the company rose 54.02% year-on-year to Rs 5,095 crore in the April-June quarter. This compares with a Rs 2,353-crore net profit estimate by analysts tracked by Bloomberg.
In July, the mining conglomerate raised Rs 8,500 crore via a share sale to institutional investors. The company allotted 19.3 crore shares at Rs 440 apiece, which is at a discount of 4.61% to the floor price of Rs 461.26, according to an exchange filing.
Shares of Vedanta closed 2.15% higher at Rs 422.70 per share on the BSE, compared to a 0.87% decline in the Sensex.
