Hindustan Zinc Shares Gain Almost 4% On Corporate Rejig Plan

Hindustan Zinc shares were up 3.76% at Rs 310.15 per share in the intraday trading on Friday after the company said that its board has authorized the Committee of Directors (CoD) to evaluate appropriate corporate restructuring exercise to unlock shareholder value.

In an exchange filing on Friday, the company said, "Pursuant to Regulation 30 of Listing Regulations, we wish to inform you that the Board of Directors of the Company, at their meeting held on September 29, 2023, have authorized Committee of Directors (CoD) to evaluate appropriate corporate restructuring exercise to unlock shareholder value."

Today, world's second largest integrated zinc producer said that the decision to undertake a comprehensive review of its corporate structure for unlocking potential value has been taken considering the scale, nature, and potential opportunities for various business verticals of the Company. On the basis of a detailed evaluation, the company intends to create separate legal entities for undertaking the Zinc & Lead, Silver, and Recycling business of the Company.

As per the company announcement, the management will appoint external advisors to assist in evaluating the options and together will update the way forward to the Board of Directors.

The strategic objectives outlined by the company's Board of Directors for undertaking the restructuring exercise include unlocking value for all stakeholders, creation of businesses positioned to better capitalize on their distinct market positions, delivering long-term growth, Accelerate towards sustainability goals focused on waste to wealth, emissions reduction and strong ESG practices, appropriate capital structure and capital allocation policies based on business-specific dynamics, and sharpen focus on core competencies and appropriate realignment of resources.

Hindustan Zinc, a Vedanta Group company in the Zinc-Lead and Silver business is the world's second largest integrated Zinc producer and 5th largest Silver producer. The company governs about ~75% of the growing Zinc market in India with its headquarters at Udaipur along with Zinc-Lead mines and smelting complexes spread across the state of Rajasthan.