Hindustan Zinc to spin off commodities into separate companies

BENGALURU, Sept 29 (Reuters): Hindustan Zinc on Friday said it plans to create separate entities for its zinc, lead, silver and recycling businesses to unlock "potential value" and will appoint external advisors to review its corporate structure.

Shares of Hindustan Zinc surged as much as 6.6 per cent after the announcement, while parent Vedanta Ltd jumped as much as 7.8 per cent. Hindustan Zinc's plans come at a time when Vedanta Ltd is also planning to separate its commodities businesses into multiple companies for better valuations. The company, which is valued at 1.2 trillion rupees ($14.45 billion), wants to broaden its investor bases and sharpen its focus on its core businesses, the company said.