1:6 Split Soon: Metal Giant Vedanta Makes Big 2.60% Stake Sale Announcement In Hindustan Zinc; Stock To BUY?

Metal giant, Vedanta Limited has made a big announcement on August 13. This billionaire Anil Agarwal-backed company has received approval for 2.60% stake sale in its zinc-subsidiary Hindustan Zinc (HZL) which is also listed on exchanges. Both Vedanta and HZL shares will be in focus accordingly. Ahead of Vedanta's stake sale, brokerages have broadly recommended buy on its stock.

As per the regulatory filing, Vedanta's Committee of Directors approved the sale of upto 11,00,00,000 equity shares of Hindustan Zinc Limited ("HZL"), representing 2.60% of the issued and paid-up equity share capital of HZL, by way of an offer for sale through the stock exchange mechanism, in accordance with applicable laws and the circulars issued by the Securities and Exchange Board of India and the stock exchanges.

Further details on the stake sale will be announced in the due course.

As per Trendlyne data, the consensus recommendation from 14 analysts for Vedanta Ltd. is BUY. Of the total, 7 analysts have recommended STRONG BUY. EPS is expected to grow by 622.3% in FY25. The 1-year target price is set at Rs 473.43 on Vedanta, hinting at over 12% potential upside.