Vedanta Approves Increase In Stake Sale Of Hindustan Zinc Via OFS
The demerger will assist in simplifying the company's corporate structure by creating independent business.
Vedanta Ltd. on Wednesday approved an increase in the stake sale of Hindustan Zinc Ltd. from 11 crore shares to 13.37 crore shares. The sale of 13.37 crore shares via an offer for sale represents a 3.17% stake in Hindustan Zinc, according to an exchange filing on Wednesday.
The floor price for the offer for sale is set at Rs 486 per share and will be open from Aug. 16 to Aug. 19, according to a notice on the BSE. Vedanta held a 64.92% stake in Hindustan Zinc as of June.
Earlier, the Anil Agarwal-owned Vedanta got a nod from the bourses to demerge its aluminum, oil and gas, power, steel and metal businesses into separate listed entities.
The demerger will assist in simplifying the company's corporate structure by creating independent business. It will also allow foreign investors to infuse money directly in these pure-play companies, boosting the country's economic growth.
The metal producer's net profit rose 54% year-on-year to Rs 5,095 crore for the April–June period. Analysts tracked by Bloomberg estimated the net profit at Rs 2,353 crore.
Shares of Vedanta closed 1.31% lower at Rs 572.95 apiece on the BSE, compared to a 0.19% rise in the benchmark Sensex.
