Anil Agarwal-promoted Vedanta will be selling 3.17 percent stake in Hindustan Zinc through an offer for sale (OFS) from August 16-19, an exchange filing said. The OFS will have a base size of 1.22 percent with an option of additional 1.95 percent stake for oversubscription, Hindustan Zinc said on August 14.
In total, 3.17 percent stake of HZL will be on offer at a floor price of Rs 486 per share in the issue that will open for non-retail investors on August 16, and for retail investors on August 19.
The company had revised the Offer For Sale (OFS) proposal earlier in the day, intending to offload more shares of Hindustan Zinc as compared to a previous announcement of OFS by the company on August 13, which proposed to sell 2.6 percent stake in Hindustan Zinc.
The group recorded its highest-ever annual refined zinc production in FY24, and commands 75 percent share in the primary market for the commodity. The group is also sitting on the world’s largest underground zinc-lead mine in India. Zinc is also essential to the steel making process and Vedanta Group has in the past shared its intention to ramp up its production capacity for the metal. Anil Agarwal has tied the demand for zinc with that of steel production in India.
Hindustan Zinc has the potential to become a $100 billion company, Anil Agarwal has said in the recent past.
Shares of Hindustan Zinc are higher by 84 percent so far this year, doubling the market capitalisation during June quarter.
Hindustan Zinc reported a debt of Rs 11,178 crore on books as of June 30, taking the Vedanta Group's consolidated debt to Rs 78,016 crore.
Earlier in May this year, Anil Agarwal’s Hindustan Zinc has shared plans to pay Rs 4225 crore in interim dividends, a move that was aimed to helping parent Vedanta Resources’ deleveraging plans.
Anil Agarwal has laid out the plan to unlock value by splitting the mining and metals group into six listed companies by March 2025.
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