Shares of Hindustan Zinc Limited declined almost 3% on Wednesday after Vedanta announced a stake sale at the company.
What Happened: Vedanta's board of directors have approved the sale of up to 11 crore equity shares, which represent 2.60% of Hindustan Zinc, via an offer for sale, the company said in a press release on Tuesday. The firm did not announce any date for the sale.
At the end of the June quarter, Vedanta held 64.92% or over 274 crore shares of Hindustan Zinc Limited.
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Vedanta is looking to demerge its various operations into distinct publicly traded companies. Last month, the debt-ridden firm got creditor approval for its demerger.
This will result in the creation of independent companies for aluminium, oil and gas, power, steel and ferrous materials and base metals, while the zinc and newly incubated businesses will remain under Vedanta.
Earlier this month, Hindustan Zinc reported a 19.4% increase in consolidated net profit for the June quarter, reaching ₹2,345 crore. Revenue for the quarter went up 11.6% to ₹8,130 crore.
The company's EBITDA saw an 18% growth, reaching ₹3,946 crore while EBITDA margins also expanded by 250 basis points, to reach 48.5%.
Price Action: Shares of Hindustan Zinc were trading 2.41% lower at ₹566.00 while Vedanta was up 0.78% at ₹425.65 on Wednesday.
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