Vedanta surges 4.5% on pledging Hindustan Zinc stake as part of its delisting process; Latter dips 2%

According to the regulatory filing, Vedanta has pledged about 14.82% of its stake involving some 62.6cr shares.

Aug 31, 2020 01:08 IST India Infoline News Service

Taking ahead its delisting process, Vedanta has pledged a portion of its stake in listed subsidiary Hindustan Zinc (HZL). This has led to a rise in Vedanta stock on Monday, however, HZL witnessed selling pressure.

According to the regulatory filing, Vedanta has pledged about 14.82% of its stake involving some 62.6cr shares. This has resulted in a non-disposal undertaking on the remaining 50.1% stake representing about 210cr shares in favour of SBICap Trustee.

Vedanta was HZL’s controlling stakeholder to the tune of 64.92% in the latter.

Vedanta intimated exchanges about their long-term syndicated loan facility agreement with state-owned lender State Bank of India (SBI) who has given a commitment of Rs5,000cr as a lender. SBICap Trustee is acting as the security trustee with door-to-door maturity of seven years. 

On Monday, Vedanta stock has gained by 4.5% with an intraday high of Rs 134.65 per piece on Sensex. However, the stock has corrected and was trading at Rs 131.65 per piece higher by 2.21% at around 1.42 pm.

HZL stock, however, has plunged by nearly 2% by clocking the day’s low of Rs 224.35 per piece. The stock at present on Sensex trades at Rs 226.35 per piece below 1.09%.

Vedanta is currently in a delisting process. Earlier on May 12, Vedanta's parent Vedanta Resources Ltd (VRL) in their letter expressed its intention to voluntarily delist the Equity Shares of the company. VRL plans to delist its shares in the company either individually or along with one or more subsidiaries.

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