Hindustan Zinc, Vedanta shares in focus today. Here's why

Shares of Hindustan Zinc Ltd and its promoter Vedanta Ltd are in focus on Friday morning after the mines ministry reportedly told the Anil Agarwal-led metals and mining company that any business reorganisation that it plans needs a formal approval from the government.

The government, as per a report by the ET, wrote the letter to the Hindustan Zinc board last month through its nominee from mines ministry after the September board meet. A source told the ET that the government nominees were not present in the Hindustan Zinc’s board meeting where the decision took place, adding that the company did not inform the need for such a demerger.

Vedanta Ltd owned 64.92 per cent in Hindustan Zinc at the end of September quarter. Shares of Hindustan Zinc are down 6.65 per cent year-to-date. Hindustan Zinc recently clocked a 35.4 per cent fall in consolidated net profit at Rs 1,729 crore for the September quarter, hit by lower zinc prices and sales.

The consolidated total income of the company during the July-September period declined to Rs 7,014 crore, as compared to Rs 8,703 crore in the year-ago period.

Responding to the Centre's letter, Hindustan Zinc said it is only exploring a corporate restructuring proposal and that it will seek the government's clearance before any such move, the source told the ET. "The company has been clearly told that any move to create different entities will require government approval," the person said.

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