Hindustan Zinc shares surge on corporate rejig plan; to create separate entities for zinc, lead, silver, recycling biz

Hindustan Zinc on Friday said that its board has authorised the Committee of Directors (CoD) to evaluate appropriate corporate restructuring exercise.

The Board of Directors of Hindustan Zinc have decided that considering the scale, nature, and potential opportunities for various business verticals of the company, it should undertake a comprehensive review of its corporate structure for unlocking potential value.

The idea is to create separate legal entities for undertaking the Zinc & Lead, Silver, and Recycling business of the Company, Hindustan Zinc said in an exchange filling.

The strategic objectives outlined by the Board of Directors of Hindustan Zinc for undertaking such an exercise include unlocking value for all stakeholders, creation of businesses which are positioned to better capitalize on their distinct market positions, deliver long-term growth and distinct investment profiles to attract deeper and broader investor bases.

It also includes acceleration towards sustainability goals focused on waste to wealth, emissions reduction and strong ESG practices; appropriate capital structure and capital allocation policies based on business specific dynamics and sharpen focus on core competencies and appropriate realignment of the company’s resources, the company statement noted.

Earlier, it was reported that Vedanta, the parent company of Hindustan Zinc, was nearing a deal under which its commodities businesses could be listed separately into four companies to get better valuations.