Vedanta sells 1.6% stake in Hindustan Zinc for ₹3,028 cr, announces ₹7 per share interim dividend for FY26

Diversified metals major Vedanta Ltd has confirmed the sale of a 1.6% stake in Hindustan Zinc for ₹3,028 crore. The company also announced its first interim dividend of ₹7 per share for the Financial Year 2025-26.

In an exchange filing, Vedanta stated, "The Board of Directors of Vedanta, at its meeting held today i.e. Wednesday, June 18, 2025, has considered and approved the First Interim Dividend of ₹ 7/- per equity share on face value of ₹ 1/- per equity share for the Financial Year 2025-26 amounting to ₹2,737 Crores." The record date for the dividend payment will be Tuesday, June 24, 2025, with the interim dividend to be paid within the stipulated timelines.

Vedanta also disclosed the sale of 66.7 million shares in Hindustan Zinc, a subsidiary, to institutional investors through an accelerated bookbuild process. This represents 1.6% of Hindustan Zinc's issued ordinary share capital, with gross proceeds from the sale amounting to ₹3,028 crore.

The company indicated that this capital raise, as it progresses towards the demerger of Vedanta into sector-focused entities, will help deleverage the balance sheet and enhance financial flexibility. This, in turn, will enable each demerged entity to pursue independent growth plans.

Vedanta stated the transaction reflects continued investor confidence in its strategic direction, particularly the progress made over recent quarters in delivering record production, driving cost efficiencies, and execution of its deleveraging and demerger initiatives aimed at long-term value creation for all stakeholders.

In the group's Integrated Report and Annual Accounts 2024-25 released today, Vedanta Chairman Anil Agarwal highlighted the company's record contribution of ₹55,349 crore to the exchequer in FY 2024-25. Agarwal emphasised that this is the "right moment to transform" Vedanta into a natural resources, energy, and technology company, with "Vedanta 2.0" playing a key role in crucial sectors.

He further noted India's position as the fastest-growing major economy for years to come, projecting it to become the third-largest economy globally by 2027-28, supported by a "progressive, production-oriented government which has set a goal for Viksit Bharat by 2047."

For FY 2024-25, Vedanta reported its highest-ever revenue of ₹1,50,725 crore, with EBITDA jumping 19% to ₹43,541 crore, delivering margins of 34%. The group invested $1.5 billion in capex on projects in FY 2024-25, with an additional $1.5-1.7 billion earmarked for FY 2025-26.

Regarding the demerger, Agarwal stated that the proposal has received overwhelming support from both shareholders and creditors, with over 99.5% of both stakeholder groups voting in favour. Post-demerger, every Vedanta shareholder will receive one new share in each of the newly demerged companies, a move expected to unlock significant value and position each entity for long-term success.

Vedanta shares closed 0.54% down at ₹456.40 on the BSE on Wednesday.