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Home / Company Updates / Vedanta Limited Divests 1.6% Stake in Hindustan Zinc for Rs 3,028 crore , Strengthens Balance Sheet

Vedanta Limited Divests 1.6% Stake in Hindustan Zinc for Rs 3,028 crore , Strengthens Balance Sheet

2025-06-18  Niranjan Ghatule  
Vedanta Limited Divests 1.6% Stake in Hindustan Zinc for Rs 3,028 crore , Strengthens Balance Sheet

On June 18, 2025, Vedanta Limited announced that it has successfully sold 66.7 million shares in Hindustan Zinc Limited, its subsidiary, to institutional investors through an accelerated bookbuild process. This transaction accounts for approximately 1.6 percent of Hindustan Zinc’s issued ordinary share capital. The gross proceeds from this sale are around INR 3,028 crore.

As the news of this stake sale emerged, shares of Vedanta Limited were trading 1 percent lower on June 18 at Rs 454 per share,

This strategic move comes as part of Vedanta’s ongoing efforts to restructure its corporate organization by demerging into sector-focused entities across various verticals. The capital raised from this transaction will play a significant role in reducing Vedanta’s debt, thereby strengthening its balance sheet and enhancing financial flexibility. This financial maneuver aims to empower each of the demerged entities with the ability to pursue their individual growth strategies independently.

The transaction reflects strong investor confidence in Vedanta’s strategic vision and operational execution. Over recent quarters, Vedanta has made notable progress by delivering record production levels, improving cost efficiencies, and effectively implementing its deleveraging and demerger initiatives. All these efforts are part of Vedanta’s broader objective of creating long-term value for its stakeholders.

Vedanta Group holds a prominent position globally in critical minerals, transition metals, energy, and technology sectors. With a strong presence across India, South Africa, Namibia, Liberia, UAE, Saudi Arabia, Korea, Taiwan, and Japan, Vedanta operates as the world’s largest integrated producer of zinc, the fourth-largest global producer of silver, and one of the top producers of aluminium. Its operations are central to supplying essential materials for the energy transition globally.

The company is recognized as India’s only private oil and gas producer and one of the largest private power producers. It is also committed to sustainability, aiming to achieve net-zero emissions by 2050 or earlier. In addition to its business accomplishments, Vedanta has made significant contributions through its transformative social impact initiatives, positively affecting the lives of nearly 7 million people in underserved regions worldwide.

This divestment and the ongoing restructuring signal Vedanta’s commitment to financial prudence, operational excellence, and sustainable growth, aligning its future with the evolving global landscape of energy and critical mineral demands.

Disclaimer:
The information provided in this blog is for informational purposes only and should not be construed as financial, investment, or other professional advice. Readers are advised to conduct their own research or consult a qualified financial advisor before making any investment decisions. The blog author and publisher are not responsible for any losses or damages resulting from the use of this information.


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