Hindustan Zinc to review corporate structure to unlock its potential value

Vedanta group firm Hindustan Zinc Ltd (HZL) on Friday said that the company's board has decided to undertake a ''comprehensive review of its corporate structure for unlocking potential value''.

According to a regulatory filing, the move is aimed at creating separate legal entities for zinc, lead, silver and recycling businesses.

''...considering the scale, nature, and potential opportunities for various business verticals of the company, the company should undertake a comprehensive review of its corporate structure for unlocking potential value,'' the filing said.

The strategic objectives outlined by the company's board for undertaking such an exercise included unlocking value for all stakeholders and creating businesses which are positioned to better capitalise on their distinct market positions and deliver long-term growth.

Besides, the move aims at forming 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 strategic objectives outlined by the Board of Directors for undertaking such an exercise are...distinct investment profiles to attract deeper and broader investor bases,'' and ''accelerate towards sustainability goals focused on waste to wealth, emissions reduction and strong ESG practices,'' it said.

The management will appoint the external advisors to help in evaluating the options and together will update the way forward to the board.

Headquartered at Udaipur in Rajasthan, Hindustan Zinc claims to be world's second largest integrated zinc producer and fifth largest silver producer.