Vedanta offloads 1.6% stake in Hindustan Zinc to raise ₹3,028 crore

Vedanta offloads 66.7 million HZL shares for ₹3,028 crore via book-building; to use funds for balance sheet strengthening and demerger into sector-specific entities

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Anil Agarwal-owned Vedanta Ltd on Wednesday offloaded 66.7 million shares, amounting to 1.6 per cent of the company’s outstanding ordinary share capital, in its subsidiary Hindustan Zinc, raising ₹3,028 crore, according to a stock exchange filing.

 

The shares were sold to institutional investors through an accelerated book-building process. The board of directors of the Anil Agarwal-led Vedanta met on Wednesday and approved the first interim dividend of ₹7 per share for the financial year 2025-26 (FY26), totalling ₹2,737 crore, the company said.

 

Hindustan Zinc’s stock ended the day at ₹452.80 on the National Stock Exchange, down 6.90 per cent, giving it a total valuation of ₹1.91 trillion, while that of Vedanta closed at ₹456, a 0.64 per cent dip. 

 

Vedanta owned 63.42 per cent stake in the company, which would decline to 61.82 per cent after the stake sale. 

 

The company said the stake sale is part of Vedanta’s broader strategy to demerge into sector-specific entities and the proceeds will be used to strengthen its balance sheet.

 

“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,” it said in a statement.

 

“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,” the company added.

 

The company added in a statement that the date for the purpose of payment of dividend is expected to be June 24.