Vedanta Ltd on June 18 confirmed selling 1.6% stake in Hindustan Zinc for Rs 3,028 crore, thus strengthening its balance sheet. The mining major also declared first interim dividend of Rs 7 per share for FY26.
"The Board of Directors of Vedanta Limited, at its meeting held today i.e. Wednesday, June 18, 2025, has considered and approved the First Interim Dividend of Rs 7 per equity share on face value of Re 1 per equity share for the Financial Year 2025-26 amounting to Rs 2,737 crore. As intimated earlier, the record date for the purpose of payment of dividend shall be Tuesday, June 24, 2025," said Vedanta in a stock exchange filing.
The record date for the purpose of payment of dividend shall be Tuesday, June 24, 2025, said the company.
"Vedanta Limited announces that it has sold 66.7 million shares in Hindustan Zinc Limited, a subsidiary of the Company, to institutional investors by way of an accelerated bookbuild process, representing 1.6% of the issued ordinary share capital. The gross proceeds from the sale of shares amount to Rs 3,028 crore," said the mining major in a stock exchange filing.
This implies that the shares were sold at the price of Rs 453.97 apiece. At 12:50 pm on June 18, Hindustan Zinc shares on NSE were trading 6% lower at Rs 457 apiece. At 1:22 pm on June 18, Vedanta Ltd shares were trading 0.22% higher at Rs 460 apiece.
"As we actively progress towards the demerger of Vedanta into sector focused entities across diverse verticals, this capital raise will help de-leverage the balance sheet and enhance financial flexibility, enabling each of the demerged entities to pursue their independent growth plans. This transaction reflects continued investor confidence in Vedanta’s strategic direction, particularly the progress made over recent quarters in delivering record production, driving cost efficiencies, and execution of its deleveraging and demerger initiatives aimed at long term value creation for all stakeholders," added Vedanta.
In December, the mining major had said its board approved the fourth interim dividend of Rs 8.5 per equity share for the financial year 2024-25, amounting to approximately Rs 3,324 crore.
Earlier, Vedanta declared a third interim dividend of Rs 20 per share in September, amounting to Rs 7,821 crore. Prior to that, the company approved a second interim dividend of Rs 4 per share in July, totalling Rs 1,564 crore, and a first interim dividend of Rs 11 per share in May 2024, aggregating to Rs 4,089 crore.
In April, Vedanta reported a 154.4% increase in consolidated net profit to Rs 3,483 crore for the quarter ended March 31, 2025, driven by lower cost and higher volume.
Harshal Dasani, Business Head, INVasset PMS said, "Vedanta’s management of Hindustan Zinc highlights critical nuances in corporate finance and capital allocation, particularly regarding dividend policies and debt management. Over the past five years, Hindustan Zinc has seen a substantial decrease in its reserves—from Rs 39,465 crore in March 2020 down to Rs 12,445 crore by March 2025, marking a considerable reduction of Rs 27,020 crore. Concurrently, borrowings have notably risen, increasing from Rs 611 crore in March 2020 to Rs 10,964 crore by March 2025, signifying an increase of Rs 10,353 crore within this short span."
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!
