Hindustan Zinc to assess corporate restructuring

29 Sep 2023 , 03:07 PM

On September 29, Hindustan Zinc told the stock exchanges that its board had resolved to consider corporate restructuring options in order to spur growth.

The restructuring is intended to divide the recycling, lead, zinc, and silver companies into independent legal corporations.

The company hopes to create new businesses that will be better positioned to capitalize on their unique market positions and produce long-term growth as part of the potential restructuring in order to unlock value for shareholders. Additionally, the restructuring will work to create a financial structure and capital allocation procedures that are appropriate for each business.

Additionally, the business will hire outside consultants to assess any prospective restructuring proposals.

Following the news, Hindustan Zinc shares increased by almost 6% to reach a day high of Rs 317.50. Hindustan Zinc shares were up 5.25% to Rs 313.60 at 1.52 p.m. on the National Stock Exchange.

The number of shares traded on the counter increased as well, reaching 12 lakh, which is a huge increase from the daily average of 4 lakh shares exchanged over the previous month.

Vedanta, the business that owns a 65% stake in Hindustan Zinc, saw its shares rise by about 7% in response to the announcement. The remarkable increases not only allowed Vedanta shares to end a seven-day losing trend, but also helped the company have its best day of 2023 so far.

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