India-based mining conglomerate Vedanta Limited has divested a 1.6% stake in its subsidiary, Hindustan Zinc Limited, raising ₹3,028 crore. The move is part of Vedanta’s ongoing efforts to strengthen its balance sheet ahead of its planned demerger into five sector-focused entities.
Mining and metals conglomerate Vedanta Limited, headquartered in Mumbai, Maharashtra, announced on June 18 that it has divested a 1.6% stake in its subsidiary, Hindustan Zinc Limited, through an accelerated bookbuild process. The stake sale raised ₹3,028 crore, aiding the company’s ongoing strategy to deleverage its balance sheet ahead of a major restructuring.
The company disclosed that it sold 66.7 million shares to institutional investors, representing 1.6% of Hindustan Zinc’s issued share capital. This move is aligned with Vedanta’s broader demerger plan to split into five distinct sector-focused entities: Vedanta (parent), Vedanta Aluminum Metal, Vedanta Power, Vedanta Iron and Steel, and Vedanta Oil and Gas.
This financial maneuver supports Vedanta’s goal of creating leaner and more agile units, capable of pursuing independent growth. In a filing, the Anil Agarwal-led company said the funds will “enhance financial flexibility and support the group’s transformation roadmap.”
The timing of the deal coincides with Hindustan Zinc’s recent announcement of a ₹10-per-share dividend, from which Vedanta stands to gain an additional ₹2,679.54 crore, further improving its liquidity position.
Earlier in the day, block deals amounting to 7.2 crore shares or 1.71% equity changed hands on the exchange at ₹460.5 per share. While initial media reports suggested a deal size of ₹7,500 crore, Vedanta later confirmed its final sale at ₹3,028 crore.
Following the transaction, Hindustan Zinc shares saw a decline of up to 6.4% in intraday trading, touching a low of ₹455.35 before settling around ₹458.75 per share by 1:15 p.m. Meanwhile, Vedanta’s stock held steady with a slight positive bias, bolstered by the announcement of a ₹7 per share interim dividend for FY2026.
The divestment signals continued investor confidence in Vedanta’s restructuring plan, which includes efforts to increase production efficiency, reduce costs, and create long-term shareholder value through its demerger and deleveraging initiatives.
