The government has organized a series of roadshows over the past two weeks in major financial hubs including Mumbai, London, Boston, and New York to evaluate interest in selling its stake in Hindustan Zinc Ltd, a subsidiary of Vedanta Group. Currently, the government holds a 29.5% stake, making it the largest minority shareholder in the company.
“The purpose of these roadshows is to facilitate the disinvestment process. The government is dedicated to reducing its stake in Hindustan Zinc Ltd and has conducted several events in key financial centers,” said Mines Secretary V L Kantha Rao at a training workshop on UNESCO Global Geoparks and Geoparks in India. Roadshows have also taken place in Singapore and Hong Kong, among other locations.
The government has previously announced its intention to divest its stake in Hindustan Zinc through an offer for sale (OFS) and will make a decision following market assessments. When questioned about the percentage of shares to be sold and the timeline, the secretary stated, “We need to complete the roadshows first, after which a proper mechanism will guide our decision. There is a committee in place to handle this.”
In 2021, the Supreme Court permitted the government to disinvest its remaining stake in Hindustan Zinc through public market channels. In related developments, Hindustan Zinc Ltd has initiated new discussions with the government regarding a proposal to restructure the company into two verticals, as opposed to the three previously suggested, according to CEO Arun Misra. The restructuring plan was delayed after the government expressed reservations about the initial proposal.
Misra noted that recent discussions regarding Hindustan Zinc’s demerger were productive. The Mines Ministry has previously communicated that any changes to business operations would require governmental approval. Additionally, the Vedanta Group firm announced last month that its board approved a second interim dividend of ₹19 per share for the current financial year, totaling ₹8,028.11 crore.
For the April to June quarter of FY25, Hindustan Zinc reported a 19.4% increase in consolidated net profit, reaching ₹2,345 crore, driven by higher EBITDA (earnings before interest, tax, depreciation, and amortization). The company’s revenue rose to ₹8,398 crore, up from ₹7,564 crore in the same period last year.
As a leading player in the mining industry, Hindustan Zinc ranks as the world’s second-largest integrated zinc producer and the third-largest silver producer. The company serves clients in over 40 countries and holds more than 75% of the primary zinc market share in India.
