The sale, comprising 66.7 million shares of Hindustan Zinc, is part of Vedanta’s broader strategy to deleverage its balance sheet and improve financial flexibility as it prepares to split into independent sector-focused entities.
“As we actively progress towards the demerger of Vedanta into sector-focused entities across diverse verticals, this capital raise will help de-leverage the balance sheet and enhance financial flexibility, enabling each of the demerged entities to pursue their independent growth plans,” the company said.
Vedanta’s demerger initiative aims to unlock value by creating standalone entities focused on its key businesses, including metals, power, and oil and gas, each of which will have operational autonomy and the ability to attract tailored investments.
Meanwhile, the company said that the stake sale “reflects continued investor confidence in Vedanta’s strategic direction,” pointing to its recent operational performance, which includes “record production, driving cost efficiencies, and execution of its deleveraging and demerger initiatives aimed at long-term value creation for all stakeholders.”
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Dividend decision ahead
The transaction, executed via an accelerated bookbuild, came just hours before the board of directors was scheduled to meet to consider the first interim dividend for the financial year 2025-26. Vedanta Ltd on Wednesday declared a first interim dividend of Rs 7 per equity share for the financial year 2025–26, amounting to approximately Rs 2,737 crore.Vedanta has been among the more generous dividend-paying companies in recent times. According to Trendlyne data, the company has declared an equity dividend of Rs 32.50 per share over the past 12 months, translating to a dividend yield of 7.11% based on its last traded share price of Rs 457.15.Also read | Hindustan Zinc shares slide 6% as Vedanta likely offloads Rs 3,323 crore worth of shares in block deal
Share performance
Ahead of the board meeting, shares of Vedanta were trading 1.1% lower at Rs 454.10 on the BSE post noon. The stock has had a modest run over the past year, gaining 0.88%, and rising 2.71% year-to-date. Over the past month, it has increased by 3.50%, although it has declined by 0.74% in the last three months and decreased by 8.09% over the previous six months.
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