Mining and natural resources player Vedanta Limited has announced an Offer For Sale (OFS) to offload 2.6 percent shareholding of Hindustan Zinc, representing 11 crore shares, according to a stock exchange filing.
Hindustan Zinc recently reported its first profit growth after six consecutive quarters of decline, riding on higher prices and growing demand. The net profit rose 19.4 percent on year to Rs 2,345 crore in the April-June quarter while sale of zinc clocked a 14 percent on year rise in the first quarter, emerging as its top business segment.
Shares of Hindustan Zinc are higher by 84 percent so far this year, doubling the market capitalisation during June quarter.
The group clocked has its highest-ever mined as well as refined production of Zinc during the June quarter.
"Our aluminium and zinc divisions continue to outperform industry benchmarks, consistently ranking in the top quartiles and deciles of the global cost curve. These achievements are a direct result of our strategic focus on cost, as reflected in a 20% year-over-year reduction in overall Cost," Arun Misra, ED, Vedanta Limited had said after the June quarter earnings.
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.
Vedanta has been planning to raise funds worth $2.5 billion to help reduce group’s debt, as per a Bloomberg report. It recently put plans to sell its steel business on hold, people familiar with the matter told the news agency, after raising Rs 8,500 crore through Qualified Institutional Placement (QIP) of shares.
Moneycontrol reported in July that Anil Agarwal's Vedanta plans to use the QIP proceeds to repay the debt it owes to Oaktree Capital, Deutsche Bank and Union Bank of India.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
