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Business News/ Companies / News/  Hindustan Zinc shares surge on corporate rejig plan; to create separate entities for zinc, lead, silver, recycling biz
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Hindustan Zinc shares surge on corporate rejig plan; to create separate entities for zinc, lead, silver, recycling biz

The Board of Directors of Hindustan Zinc have decided that considering the scale, nature, and potential opportunities for various business verticals of the company, it should undertake a comprehensive review of its corporate structure for unlocking potential value.

The idea is to create separate legal entities for undertaking the Zinc & Lead, Silver, and Recycling business of the Company, Hindustan Zinc said in an exchange filling.Premium
The idea is to create separate legal entities for undertaking the Zinc & Lead, Silver, and Recycling business of the Company, Hindustan Zinc said in an exchange filling.

Hindustan Zinc on Friday said that its board has authorised the Committee of Directors (CoD) to evaluate appropriate corporate restructuring exercise.

The Board of Directors of Hindustan Zinc have decided that considering the scale, nature, and potential opportunities for various business verticals of the company, it should undertake a comprehensive review of its corporate structure for unlocking potential value. 

The idea is to create separate legal entities for undertaking the Zinc & Lead, Silver, and Recycling business of the Company, Hindustan Zinc said in an exchange filling.

“To this end, the Board of Directors have authorized a committee of directors to evaluate and recommend such options and alternatives to the Board of Directors," the company said.

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The company’s management will appoint external advisors to assist in evaluating the options and together will update the way forward to the Board of Directors.

Also Read: MCX share price nosedives after SEBI's gag on commodity derivative platform launch

The strategic objectives outlined by the Board of Directors of Hindustan Zinc for undertaking such an exercise include unlocking value for all stakeholders, creation of businesses which are positioned to better capitalize on their distinct market positions, deliver long-term growth and distinct investment profiles to attract deeper and broader investor bases.

It also includes acceleration 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 the company’s resources, the company statement noted.

Earlier, it was reported that Vedanta, the parent company of Hindustan Zinc, was nearing a deal under which its commodities businesses could be listed separately into four companies to get better valuations.

Read here: Vedanta's aluminum, steel, oil businesses may be listed separately; demerger announcement soon: Report

As per a Bloomberg report, Vedanta's businesses including aluminum, oil and gas, iron ore, and steel will be separately listed. The move could help business tycoon Anil Agarwal manage his metals-to-energy empire’s debt load.

Hindustan Zinc share price surged after the announcement of corporate restructuring.

At 1:25 pm, Hindustan Zinc shares were trading 4.63% higher at 312.75 apiece on the BSE.

Meanwhile, Vedanta, which holds nearly 65% stake in Hindustan Zinc, also rallied. Vedanta share price was trading 6.19% higher at 221.15 on the BSE.

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Published: 29 Sep 2023, 01:24 PM IST
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