Hindustan Zinc Limited (HZL) announced on Wednesday that its offer for sale (OFS) will commence on August 16 and conclude on August 19, with a floor price set at ₹486 per share. The OFS is part of a broader strategy by its parent company, Vedanta, which has decided to increase its stake sale in Hindustan Zinc to 3.31% through this route, up from the initially planned 2.60%. This update was made official in an exchange filing by Vedanta on Wednesday, revising an earlier decision made on August 13, 2024.
Hindustan Zinc Limited (HZL) : For this OFS, only non-retail investors will be allowed to place bids on the first day, August 16, 2024. Hindustan Zinc has expanded the scope of the sale, now offering 14 crore shares instead of the 11 crore shares initially announced. The floor price for this offer is set at ₹486 per share, reflecting a 16% discount from Wednesday’s closing price of ₹576. Hindustan Zinc’s stock had closed down by 0.7% on Wednesday compared to Tuesday’s closing price.
The sale will be conducted in two phases. On August 16, over 5.14 crore equity shares, representing 1.22% of Hindustan Zinc’s total equity, will be available exclusively to non-retail investors. On August 19, the OFS will open to retail investors and any non-retail investors who wish to carry forward their unallocated bids. Additionally, there is an option to sell an additional 8.23 crore shares, which represent 1.95% equity, if there is oversubscription.
Hindustan Zinc Limited (HZL) : As of the end of the June quarter, Vedanta held a 64.92% stake in Hindustan Zinc, while the government owned 29.54%. This OFS is part of Vedanta’s broader strategy to spin off its aluminium, oil and gas, power, base metals, and iron and steel businesses into separate publicly traded companies. The goal behind this move is to reduce refinancing risks and decrease the company’s reliance on dividends from Vedanta Resources Ltd (VRL).
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What Is Hindustan Zinc Limited (HZL)?
Hindustan Zinc Limited (HZL) is one of India’s largest and most prominent integrated producers of zinc, lead, and silver. Established in 1966, the company has played a pivotal role in the development of the zinc industry in India, and it operates under the aegis of Vedanta Limited, one of the world’s leading diversified natural resources companies. Headquartered in Udaipur, Rajasthan, Hindustan Zinc has grown to become a leader in its field, with a significant share of the global zinc market.
HZL’s core business revolves around the extraction and processing of zinc and lead ores, which are essential for a wide range of industries. Zinc, the company’s primary product, is extensively used in galvanization, a process that protects steel from rusting, making it vital for the construction, automotive, and infrastructure sectors. Lead, another key product, is mainly used in the production of batteries, particularly for vehicles and industrial applications. Hindustan Zinc also produces significant quantities of silver as a by-product of its zinc and lead operations, contributing to its diversified portfolio.
Hindustan Zinc Limited (HZL) : The company operates multiple mining and smelting facilities across India, with key sites located in Rajasthan, including the Rampura Agucha mine, which is one of the largest zinc mines in the world. HZL’s mining operations are supported by state-of-the-art technology and a strong focus on sustainable practices. The company has made significant investments in renewable energy and water conservation initiatives, underscoring its commitment to reducing its environmental footprint while maintaining high levels of operational efficiency.
In addition to its operational prowess, Hindustan Zinc is known for its robust corporate social responsibility (CSR) initiatives. The company actively engages in community development programs, focusing on education, healthcare, and rural infrastructure in the regions surrounding its operations. These efforts have earned HZL a reputation not just as an industry leader but also as a responsible corporate citizen.
As a key player in the global zinc market, Hindustan Zinc continues to drive innovation and sustainability in the mining sector. Its strategic initiatives, including plans to expand its production capacity and explore new markets, position it as a vital contributor to India’s industrial growth and a significant force in the global metals industry.
Know More About Hindustan Zinc Limited (HZL)
What does Hindustan Zinc Limited (HZL) specialize in?
Hindustan Zinc Limited (HZL) specializes in the production of zinc, lead, and silver. It is one of the largest integrated producers of zinc in the world, and its operations also include significant mining and smelting activities.
Where are Hindustan Zinc’s main operations located?
Hindustan Zinc’s main operations are located in Rajasthan, India. The company operates major mining and smelting facilities, including the Rampura Agucha mine, which is one of the largest zinc mines globally.
What industries rely on Hindustan Zinc’s products?
Hindustan Zinc’s products, particularly zinc and lead, are essential for several industries. Zinc is primarily used in galvanization to protect steel from corrosion, making it crucial for the construction, automotive, and infrastructure sectors. Lead is mainly used in the production of batteries, especially for vehicles and industrial purposes.
Is Hindustan Zinc involved in any sustainability initiatives?
Yes, Hindustan Zinc is committed to sustainability and has implemented several initiatives to reduce its environmental impact. These include investments in renewable energy, water conservation, and efforts to minimize emissions. The company also focuses on sustainable mining practices and corporate social responsibility (CSR) activities.
Who owns Hindustan Zinc Limited?
Hindustan Zinc Limited is a subsidiary of Vedanta Limited, a leading global natural resources company. As of the latest reports, Vedanta holds a majority stake in HZL, while the Government of India also owns a significant portion of the company’s equity.