Shares of Hindustan Zinc Limited fell nearly 3% on Wednesday after Vedanta announced a share sale in the company.

What happened: Vedanta’s board of directors has approved the sale of up to 110 million common shares, representing 2.60% of Hindustan Zinc, through an offer for sale, the company said in a press release on Tuesday. The company did not disclose a date for the sale.

At the end of the June quarter, Vedanta held 64.92% or over 274 crore shares of Hindustan Zinc Limited.

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Vedanta wants to split its various businesses into separate listed companies. Last month, the debt-ridden company received approval from its creditors for its demerger.

This will result in the creation of independent companies in aluminium, oil and gas, power, steel and ferrous materials and base metals, while the zinc and newly formed businesses will remain under Vedanta.

Earlier this month, Hindustan Zinc reported a 19.4% rise in consolidated net profit for the June quarter to Rs 2,345 crore. Revenue for the quarter rose 11.6% to Rs 8,130 crore.

The company’s EBITDA increased by 18% to reach Rs 3,946 crore, while EBITDA margins also increased by 250 basis points to 48.5%.

Price promotion: Shares of Hindustan Zinc traded 2.41% lower at ₹566.00 on Wednesday, while Vedanta rose 0.78% to ₹425.65.

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