Hindustan Zinc OFS likely before FY25 concludes, says CNBC-TV18; shares rise over 3%

Hindustan Zinc OFS likely before FY25 concludes, says CNBC-TV18; shares rise over 3%

An Offer for Sale for Hindustan Zinc Ltd (HZL) is likely before FY25 concludes, CNBC-TV18 reported on August 7 citing sources.

Government plans to dilute stake in Hindustan Zinc in tranches, reported CNBC-TV18.

At 10:40 am on August 7, Hindustan Zinc's shares on BSE were trading 3.4 percent higher at Rs 629.4 apiece.

As of June 30, 2024, Centre holds 29.54 percent stake in HZL while Vedanta holds 64.92 percent stake in the metal firm.

The Centre is looking to sell some of its stake in HZL, DIPAM Secretary Tuhin Kanta Pandey said last month.

Hindustan Zinc's demerger process will kickstart once the central government completes its long pending divestment process, chief executive officer Arun Misra told Moneycontrol in an interview on April 19.

The Union Cabinet had given approval in 2022 to sell the government’s entire stake. Till 26 percent, some rights remain with the shareholder; anything below that, would mean foregoing several rights.

HZL is an Indian integrated mining and resources producer of zinc, lead, silver and cadmium.

Last week, Hindustan Zinc reported its first profit rise after six consecutive quarters of decline, as higher zinc prices and demand supported the miner.

The company's net profit rose 19.4 percent to Rs 2,345 crore in the April-June quarter.

The company reported a 14 percent rise in zinc sales for the first quarter, its top business segment.

Revenue from company's zinc and lead business rose 11.4 percent, resulting in a 11 percent rise in overall revenue to Rs 7,893 crore.

Hindustan Zinc, the world's third top silver producer, clocked a 10 percent growth in its sales from silver.