Vedanta, Hind Zinc shares climbed up to 8% today. Here's why
Hindustan Zinc has informed stock exchanges that its board of directors of the company, at their meeting held today authorised CoD to evaluate appropriate corporate restructuring exercise to unlock shareholder value.
- Sep 29, 2023,
- Updated Sep 29, 2023 2:00 PM IST
Shares of Vedanta Ltd and Hindustan Zinc Ltd (Hind Zinc) climbed up to 8 per cent in Friday's trade on healthy volumes. Amid ongoing reports of Vedanta mulling demerger of its businesses into several listed entities, Hindustan Zinc has informed stock exchanges that its board of directors have authorised committee of directors (CoD) to evaluate appropriate corporate restructuring exercise in a bid to unlock shareholder value. Vedanta owns 64.92 per cent stake in Hindustan Zinc.
Shares of Vedanta climbed 7.97 per cent to hit a high of Rs 224.85 on BSE. Hindustan Zinc jumped 5 per cent to Rs 313.90 level.
"The board of directors of the company have decided that considering the scale, nature, and potential opportunities for various business verticals of the company, the company should undertake a comprehensive review of its corporate structure for unlocking potential value," Hindustan Zinc said. The company said the idea is to create separate legal entities for undertaking zinc & lead, silver, and recycling business of the company, subject to a detailed evaluation.
The strategic objectives for undertaking such an exercise includes unlocking value for stakeholders, creation of businesses that are positioned to better capitalise on their distinct market positions and deliver long-term growth. Through this exercise, the company also intend to create distinct investment profiles to attract deeper and broader investor bases.
Besides, Hindustan Zinc said it is looking to appropriate capital structure and capital allocation policies based on business specific dynamics and sharpen focus on core competencies and appropriate realignment of the company’s resources.
"The management will appoint the external advisors to assist in evaluating the options and together will update the way forward to the Board of Directors. Appropriate announcements and public disclosures in accordance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and other applicable laws will be made as and when required," the company said.
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Shares of Vedanta Ltd and Hindustan Zinc Ltd (Hind Zinc) climbed up to 8 per cent in Friday's trade on healthy volumes. Amid ongoing reports of Vedanta mulling demerger of its businesses into several listed entities, Hindustan Zinc has informed stock exchanges that its board of directors have authorised committee of directors (CoD) to evaluate appropriate corporate restructuring exercise in a bid to unlock shareholder value. Vedanta owns 64.92 per cent stake in Hindustan Zinc.
Shares of Vedanta climbed 7.97 per cent to hit a high of Rs 224.85 on BSE. Hindustan Zinc jumped 5 per cent to Rs 313.90 level.
"The board of directors of the company have decided that considering the scale, nature, and potential opportunities for various business verticals of the company, the company should undertake a comprehensive review of its corporate structure for unlocking potential value," Hindustan Zinc said. The company said the idea is to create separate legal entities for undertaking zinc & lead, silver, and recycling business of the company, subject to a detailed evaluation.
The strategic objectives for undertaking such an exercise includes unlocking value for stakeholders, creation of businesses that are positioned to better capitalise on their distinct market positions and deliver long-term growth. Through this exercise, the company also intend to create distinct investment profiles to attract deeper and broader investor bases.
Besides, Hindustan Zinc said it is looking to appropriate capital structure and capital allocation policies based on business specific dynamics and sharpen focus on core competencies and appropriate realignment of the company’s resources.
"The management will appoint the external advisors to assist in evaluating the options and together will update the way forward to the Board of Directors. Appropriate announcements and public disclosures in accordance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and other applicable laws will be made as and when required," the company said.
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Also read: Adani Power, Reliance, ICICI Bank: Trading strategy for buzzing largecap stocks