Hindustan Zinc Ltd (HZL), a Vedanta group company, has recently revisited its demerger strategy, now aiming to divide the company into two verticals rather than the three initially proposed. This shift follows recent discussions with the Indian government, which holds a 29.54% stake in the company and had previously shown resistance to the original restructuring plan.
In a statement to PTI, CEO Arun Misra confirmed that discussions with the government have been productive. “We have revisited the demerger plans, and the proposal has been adjusted from three to two verticals,” Misra said. He noted that further feedback from the government is anticipated.
The Mines Ministry, as a minority shareholder, had earlier highlighted the need for its approval before any restructuring could proceed. Misra acknowledged the complexity of the demerger, stating that it involves substantial asset restructuring, including mines and smelting operations. “The process involves separating assets like mines and smelters, but it’s important to note that no single mine exclusively produces one type of metal. Thus, there will be interactions between the two new entities,” he added.
Hindustan Zinc had previously aimed to enhance its market capitalization through the proposed spin-off and engaged an advisory firm to evaluate the plan. The company is currently hosting Zinc College 2024, an international event organized by the International Zinc Association.
Recently, HZL’s board approved a second interim dividend of ₹19 per share for the financial year, totaling ₹8,028.11 crore. The company reported a 19.4% increase in consolidated net profit to ₹2,345 crore for the April-June quarter of FY25, up from ₹1,964 crore in the same period last year. Income rose to ₹8,398 crore from ₹7,564 crore.
Hindustan Zinc is recognized as the world’s second-largest integrated zinc producer and the third-largest silver producer, with a significant share in the Indian primary zinc market and customers across more than 40 countries.
