India India’s leading mining company Vedanta Limited made a big announcement regarding its stake in Hindustan Zinc. Vedanta said on Tuesday that the company’s board of directors has approved the proposal to sell 11 crore shares in Hindustan Zinc through an offer for sale. Let us tell you that 11 crore shares in Hindustan Zinc are 2.60 percent of the total stake in the company. However, Vedanta Limited has not given any information about the date of bringing OFS for selling stake in Hindustan Zinc and its base price.
Approval was given in an important meeting held on August 13, 2024
Vedanta Limited said in a notice to the stock market exchanges, “The authorized committee of the Board of Directors of Vedanta Limited in a crucial meeting held on August 13, 2024 approved the sale of 11,00,00,000 equity shares (2.6 per cent stake) of Hindustan Zinc Limited through an offer for sale (OFS). This is 2.60 per cent of the issued and paid-up equity share capital of Hindustan Zinc.”
Vedanta’s stake in Hindustan Zinc was 64.92 percent till June 2024
Let us tell you that at the end of the first quarter (April-June 2024) of the current financial year 2024-25, Vedanta Limited held 64.92 percent stake in Hindustan Zinc, while the government held 29.54 percent stake. Vedanta plans to split its aluminum, oil and gas, power, base metals and iron and steel businesses into separate listed units.
There was a bumper increase of 36.5 percent in the net profit of the company
The initiative is aimed at reducing refinancing risk and dependence on dividends from Vedanta Resources Limited. Vedanta Limited earned a consolidated net profit of Rs 3,606 crore in the April-June 2024 quarter of the current financial year. This is 36.5 percent more than the net profit of Rs 2,640 crore in the same period a year ago. Let us tell you that this stake sale in Hindustan Zinc will have a direct impact on the share price, which will directly affect the investors.
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