Hindustan Zinc Ltd (HZL), India’s largest producer of zinc and a key company within the Vedanta Group, has approved plans to raise up to ₹1,400 crore through the issuance of non-convertible debentures (NCDs) as part of its ongoing capital management strategy. The decision was cleared by the company’s Committee of Directors at its meeting held on February 2, 2026, and was subsequently disclosed through a regulatory filing.

Key Highlights

• Hindustan Zinc has approved raising up to ₹1,400 crore through the issuance of listed, unsecured non-convertible debentures.
• The funds will be used for general corporate purposes, including refinancing and operational needs.

The proposed fundraising will be executed through the issue of unsecured, redeemable, rated and listed debentures, offering the company flexibility in accessing long-term debt at competitive rates. The NCD issuance is structured in two separate tranches, with the first tranche amounting to ₹420 crore and the second tranche valued at ₹980 crore, taking the total proposed borrowing to ₹1,400 crore. The debentures will be listed on a recognised stock exchange, enhancing transparency and liquidity for investors.

According to the company, the proceeds from the debenture issue will be utilised for general corporate purposes, which may include refinancing existing debt, supporting operational requirements, and funding future growth initiatives. The move reflects Hindustan Zinc’s proactive approach to optimising its capital structure while ensuring adequate liquidity to support business continuity and long-term expansion plans.

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Hindustan Zinc operates integrated mining and smelting facilities and is a leading producer of zinc, lead, and silver. The company has consistently maintained a strong balance sheet and cash-generating capability, supported by efficient operations and robust demand for base metals. By tapping the domestic debt market through NCDs, Hindustan Zinc aims to strengthen its financial flexibility while continuing to invest in productivity improvements, sustainability initiatives, and capacity enhancement across its operations.