The CP proceeds will be used for general corporate purposes.
According to the Rationale report, Ind-Ra continues to take a consolidated view of HZL and its parent Vedanta Limited along with the other subsidiaries of VL.
However, HZL’s linkages with its parent are assessed as moderate, due to the fragmented share-holding and limited management and operational overlap. As such, the ratings primarily reflect HZL’s stronger standalone business and financial profile than consolidated VL’s.
HZL’s short-term rating has been affirmed on the back of its strong market position in the global zinc market, healthy reserve life, low-cost operations and strong balance sheet with a net cash position.
At around 12:36 PM, Hindustan Zinc was trading at Rs324.40 apiece down by Rs2.2 or 0.67% on Sensex.