Vedanta gains after mining major announces to sell its international zinc business

Vedanta price target 2023: Shares of mining major Vedanta, NSE: VEDL, rose 1 per cent to Rs 334 in Friday's trade around 12:30 PM. It hit an intraday high of Rs 340.75 and low of Rs 331.40.

Earlier on Thursday, the company approved exchanges that the board has approved the sale of Zinc International assets to Hindustan Zinc for a cash consideration of USD 2,981 million. The board approved the sale of Zinc International assets held by THL Zinc Ventures Ltd (Mauritius) (THLZV), a direct wholly-owned subsidiary of the metals and mining major.

The assets held THLZV through THL Zinc Ltd (Mauritius) comprising shares held in Black Mountain Mining Pty Ltd, South Africa (69.6 per cent) and THL Zinc Namibia Holdings (Pty) Ltd (100 per cent), Namibia, will be sold to the proposed wholly-owned subsidiary (SPV) of Hindustan Zinc Ltd (HZL) for a cash consideration not exceeding USD 2,981 million, Vedanta said in a filing.

Vedanta holds 64.92 per cent of the equity share capital of HZL.

Meanwhile, global brokerage firm CLSA has maintained underperform rating on Anil Agarwal-promoted Vedanta with a price target of Rs 295. In another related development, Vedanta subsidiary Hindustan Zinc has announced an interim dividend of Rs 13 per equity share for its shareholders. 

Also Read | DIVIDEND STOCKS: Havells India, Persistent Systems, Hindustan Zinc - Check amount and record date

Also Read | Tanishq enters American market, Senator Robert Menendez inaugurates first store in New Jersey