Hindustan Zinc was a government-owned firm until 2002.
New Delhi:
Vedanta Ltd on Wednesday mentioned it has pledged 5.77 per cent stake in Hindustan Zinc Ltd for a time period mortgage of Rs 8,000 crore.
The announcement comes days after the Cupboard Committee on Financial Affairs (CCEA) permitted the federal government’s 29.5 per cent stake sale in Vedanta group agency Hindustan Zinc Ltd (HZL).
“…to safe the time period mortgage facility of Rs 8,000 crore…VEDL (Vedanta Ltd) has created encumbrance within the type of Pledge (5.77 per cent of the paid-up share capital of HZL) and NDU (non-disposal enterprise) (50.10 per cent of the paid-up share capital of HZL) in respect of its shareholding in HZL,” the metals and mining main mentioned in a submitting to BSE.
The corporate additional mentioned the sooner encumbrance created by Vedanta aggregating to 64.92 per cent of paid-up share capital of Hindustan Zinc, to safe the syndicated time period mortgage facility of Rs 10,000 crore within the type of pledge — 14.82 per cent of the paid-up share capital of HZL — and non-disposal enterprise — 50.10 per cent stake — had been launched.
“…not one of the shareholding of VEDL (Vedanta Ltd) in HZL is encumbered for any private borrowing of any of the promoter/promoter group of HZL and that is an enterprise by VEDL to proceed to retain their present shareholding in HZL, for the consolation of the lenders of VEDL,” the submitting added.
Hindustan Zinc was a government-owned firm until 2002. In April 2002, the federal government offloaded 26 per cent stake in HZL to Sterlite Alternatives and Ventures Ltd for Rs 445 crore — giving Vedanta group administration management in HZL.
Vedanta group later purchased 20 per cent from the market and one other 18.92 per cent from the federal government in November 2003, elevating its possession in Hindustan Zinc to 64.92 per cent.