Shares of Hindustan Zinc Ltd (HZL) were trading higher on Friday after the firm said it proposes to raise up to Rs 4,000 crore via debentures. The proposal is pursuant to the approval of the board of directors in its meeting held on July 21.
Hindustan Zinc stock gained 1.8% to the intraday high of Rs 220 against the earlier close of Rs 216.05. The stock opened at Rs 215.90, also its intraday low. Hindustan Zinc stock price has gained after 4 days of consecutive fall. The stock has risen 3.48% since the beginning of the year. The stock hit a new 52-week high of Rs 258.80 on August 11, 2020 and a 52-week low of Rs 122, on March 13, 2020.
Market capitalisation of the firm stood at Rs 91,795.06 crore. Hindustan Zinc share price trades higher than 100 and 200-day moving averages but lower than 5, 20 and 50-day moving averages.
"The company proposes to offer rated, unsecured, redeemable, non-cumulative, non-convertible debentures aggregating up to Rs 4,000 crores in one or more tranches, and in this regard is holding a meeting of its duly constituted committee of the Directors on September 22," HZL said in a regulatory filing on BSE.
In mid-July, Hindustan Zinc had reported a weak set of earnings for the April-June quarter. Net profit for the quarter stood at Rs 1,359 crore as compared to a profit of Rs 1,765 crore in the corresponding quarter previous year. The company reported a 20% YoY de-growth in revenues to Rs 3,989 crore for Q1FY21, as compared to revenues of Rs 4,987 crore for Q1FY20. EBIDTA for the quarter stood at Rs 1,576 crore down 36.4% YoY, while EBIDTA margins contracted by 987 bps to 40.4%.
Commenting on 1QFY21 results of Hindustan Zinc, Jyoti Roy, DVP Equity Strategist, Angel Broking said, "Revenue was adversely impacted due to drop in both production and realizations. While mined metal production was down by 5% YoY realizations for lead and Zinc were down by 11% and 19% YoY though silver realizations were up by 10% YoY."