Vedanta to sell ₹7,500 cr stake in Hindustan Zinc; HZL board clears ₹12,000 cr expansion plan
Mumbai: Vedanta Ltd is set to divest up to ₹7,500 crore worth of its stake in Hindustan Zinc Ltd (HZL) through block deals, offering shares at a discount of up to 10% from the previous close, Economic Times reported quoting CNBC-TV18.
DAM Capital and Citi are said to be managing the deal as brokers.
Vedanta currently holds 63.42% in HZL, as per the latest shareholding data.
The development came on the same day HZL’s board approved a significant ₹12,000 crore capital expenditure plan aimed at expanding its zinc smelting and mining capacity.
The company will set up a new smelter plant at Debari, Rajasthan, and increase mining operations as part of its broader ambition to double its production of zinc, lead and silver.
Of the total investment, ₹6,500 crore will be allocated to the smelter, while ₹5,500 crore will go towards ramping up mining capacity, CEO Arun Misra said.
The smelter project will include a roaster, fumer, cell house, and melting casting unit at Debari, while the mining expansion will focus on the Rajpura Dariba mine, with additional upgrades at Zawar and Agucha.
“The smelter is expected to be completed in two-and-a-half to three years,” Misra said, adding, “This is the first phase of our 2 million tonne expansion plan. A 250 KTPA smelter with its own concentrator and the required mine expansion is now fully cleared.”
HZL, which currently has a metal production capacity of 1.1 million tonnes per annum (MTPA), had earlier outlined plans to double its capacity to 2 MTPA in five years.
The newly approved investment forms part of this roadmap.
Hindustan Zinc is the world’s largest integrated zinc producer and among the top five global silver producers.
Vedanta, led by billionaire Anil Agarwal, is a diversified natural resources conglomerate with interests spanning oil and gas, metals, power and mining.
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