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Hindustan Zinc shares worth over ₹3,000 crore may change hands; Promoter Vedanta likely seller
Small retail shareholders, or those with authorised share capital of up to ₹2 lakh, had only 2.5% stake in Hindustan Zinc at the end of the March quarter.
Shares of Hindustan Zinc Ltd. and its promoter Vedanta Ltd. are in focus on Wednesday, June 18, after people in the know informed CNBC-TV18 of a likely block deal.
Vedanta is likely to sell 66.7 million shares, or 1.6% of Hindustan Zinc's outstanding equity, worth ₹3,018.2 crore in Hindustan Zinc, sources told CNBC-TV18 on Tuesday, June 17.
The floor price for the block deal has been set at ₹452.5 per share, sources added, which is a discount of 7.5% to Tuesday's closing price.
DAM Capital Advisors is the book-running lead manager for the transaction.
At the end of the March quarter, Vedanta held 63.42% stake in Hindustan Zinc, as per data available on the exchanges. The Government held over 25% stake, while the rest was held by LIC and FPIs, leaving very little public float. Small retail shareholders, or those with authorised share capital of up to ₹2 lakh, had only 2.5% stake in Hindustan Zinc at the end of the March quarter.
On Tuesday
, Hindustan Zinc's board approved the initial plans to double the capacity of its zinc, lead and silver production.
For this 2x growth plan, the company approved expanding its integrated refined metal capacity by 250 ktpa with corresponding increases in mines and mills capacity.
The project is to be completed within 36 months with an estimated overall cost of around ₹12,000 crore.
Meanwhile, June 17 was also the record date for Hindustan Zinc's first interim dividend of ₹10 per equity share i.e. 500% on face value of ₹2 per equity share for the financial year 2025-26.
Vedanta would get ₹2,679 crore as dividend from Hindustan Zinc on the back of its 63.42% stake.
Shares of Hindustan Zinc ended the previous session 5.26% lower at ₹485.95 apiece. The stock has gained 8.4% in the past month. Meanwhile, Vedanta shares declined 0.63% to ₹461 apiece in the previous session. The stock has gained 4.3% in the past month.
