Hindustan Zinc block deal: Vedanta divests 1.6% stake for ₹3,028 crore; here is how shares are faring

The stock came under selling pressure after Anil Agarwal-led Vedanta Ltd on Wednesday said it has divested a 1.6% stake in its arm Hindustan Zinc Ltd (HZL) for nearly ₹3,028 crore.

As Vedanta actively progresses towards the demerger of its businesses, the money raised through the stake sale will help deleverage the balance sheet and enhance financial flexibility, enabling each of the demerged entities to pursue their independent growth plans.

In a regulatory filing, the company informed that it has "sold 66.7 million shares in Hindustan Zinc Ltd...to institutional investors by way of an accelerated bookbuild process, representing…1.6% of the issued ordinary share capital".

The gross proceeds from the sale of shares amount to around ₹3,028 crore.

"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 executing its deleveraging and demerger initiatives aimed at long-term value creation for all stakeholders," the filing said.

Earlier, Vedanta Ltd said it expects to complete the demerger of its businesses by the end of September this year.

The company had said post-demerger its existing businesses will be structured in six independent companies – Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power, Vedanta Steel and Ferrous Materials, Vedanta Base Metals, and Vedanta Ltd. However, later it revised the plan.

In a separate filing, Vedanta said its board has approved the first interim dividend of ₹7 per equity share for 2025-26, amounting to nearly ₹2,737 crore.

"...the record date for the purpose of payment of dividend shall be Tuesday, June 24, 2025, and the interim dividend shall be duly paid within the stipulated timelines as prescribed under law," the filing said.

At the time of writing this report, shares of Vedanta were trading at ₹456.45 apiece on the NSE, down 0.54%.

Vedanta Q4 FY25 Results

Mining major Vedanta Ltd reported a 154.4% increase in consolidated net profit to ₹3,483 crore in the quarter ended March 2025 (Q4 FY25), driven by lower production costs and higher volume.

The company had posted a net profit of ₹1,369 crore in the year-ago period.

The income of the company in the latest January-March quarter rose to ₹41,216 crore as against ₹36,093 crore in the year-ago period, Vedanta said in a filing to BSE.

In a statement, the company said that during the fourth quarter its "Profit After Tax (PAT) was at ₹4,961 crore, up 118% Y-o-Y and 2% QoQ.

The consolidated net profit of the company in the financial year ended March 2025 increased to ₹14,988 crore from ₹4,239 crore in March 2024.

The consolidated income of the company during the year ending March 2025 went up to ₹1,56,643 crore from ₹1,46,277 crore in the preceding fiscal.

Hindustan Zinc Q4 FY25 Results

Vedanta group firm Hindustan Zinc Ltd (HZL) reported a 47.3% increase in consolidated net profit at ₹3,003 crore in the quarter ended March 2025 on the back of higher income.

The company had posted a net profit of ₹2,038 crore in the year-ago period.

Income of the company during the latest January-March quarter increased to ₹9,314 crore from ₹7,822 crore logged in the year-ago period, HZL said in a filing to BSE.

In a statement the company said that it was its "best-ever fourth quarter profit after tax of ₹3,003 crore, up 47% Y-o-Y".