Hindustan Zinc has officially announced a strengthened partnership with Tata Steel to scale the integration of EcoZen, its low-carbon zinc solution, into sustainable steel manufacturing processes. The collaboration, formalized through a press release filed under Regulation 30, marks a significant evolution in the companies' two-decade strategic relationship.

Partnership Expansion Details

The enhanced collaboration builds on Hindustan Zinc's position as the world's largest integrated zinc producer and focuses on expanding EcoZen adoption across Tata Steel's operations. EcoZen, Asia's first low-carbon zinc, is produced using renewable energy and delivers substantial environmental benefits for steel manufacturing.

Environmental Impact and Benefits

EcoZen's verified carbon footprint of less than 1 tonne of CO₂ equivalent per tonne of zinc represents approximately 75% lower carbon intensity than conventional zinc production. The adoption of EcoZen can help avoid approximately 400 kg of CO₂ emissions per tonne of steel galvanised, compared to conventional zinc, providing customers with a tangible pathway to reducing Scope 3 emissions.

Leadership Perspectives

Mr. Arun Misra, CEO of Hindustan Zinc, emphasized that "EcoZen represents our vision to offer sustainable metal solutions that support the evolving needs of global manufacturing. Our partnership with Tata Steel is a significant milestone in scaling up the adoption of low-carbon zinc and reinforcing greener supply chains across India's industrial ecosystem."

Mr. Ranjan Sinha, Chief Procurement Officer at Tata Steel, congratulated the strategic partner on delivering EcoZen to their Sahibabad plant, highlighting their shared commitment to sustainable practices and advancing green technologies within their supplier ecosystem.

Strategic Industry Impact

The collaboration reinforces climate-aligned metal sourcing across steel and industrial applications, supporting broader sustainability commitments from Scope 3 emissions reduction to climate-aligned procurement frameworks. Zinc plays a vital role in galvanising steel for corrosion protection across sectors including infrastructure, automotive, renewable energy, electronics, and energy storage, making this low-carbon solution particularly significant for downstream industries seeking to advance their decarbonisation goals.

Hindustan Zinc has become subject to a comprehensive encumbrance disclosure as Vedanta Limited filed detailed regulatory documents under SEBI Takeover Regulations regarding restrictions on 50.10% of the company's equity shares. The encumbrance stems from a substantial debenture issuance by Vedanta Limited, creating non-disposal undertakings over Hindustan Zinc shares.

Debenture Structure and Trust Arrangement

Vedanta Limited has issued unsecured, listed, rated, redeemable, non-convertible debentures worth ₹ 2,575 crore with a face value of ₹ 1,00,000 each on a private placement basis. Axis Trustee Services Limited has been appointed as the debenture trustee, with a Debenture Trust Deed executed on March 12, 2026. The debentures are listed on BSE Limited and carry credit ratings from CRISIL and ICRA.

Comprehensive Debenture Holder Details

The debenture holders at the time of allotment include major institutional investors and financial entities. Key debenture holders comprise Aditya Birla Sun Life funds (Balanced Advantage Fund, Credit Risk Fund, Medium Term Plan, Regular Savings Fund), ICICI Prudential funds (Balanced Advantage Fund, Equity & Debt Fund, Multi Asset Plan, Regular Savings Fund), and international entities including Barclays Bank PLC and Citicorp Investment Bank Singapore Limited. Additional holders include Kotak Dynamic Bond Fund, Kotak Low Duration Fund, NPS Trust accounts, Reliance General Insurance Company LTD, UTI funds, and Alpha Alternatives Fund Advisors LLP.

Encumbrance Terms and Restrictions

Under the debenture trust deed terms, Vedanta Limited must directly maintain legal and beneficial ownership of 50.10% of Hindustan Zinc's share capital on a fully diluted basis until full redemption of the debentures. The company faces specific restrictions prohibiting creation of any security over or disposal of 50.10% of Hindustan Zinc's entire issued share capital or voting rights.

Existing Encumbrance Portfolio

Vedanta Limited maintains multiple existing encumbrances on Hindustan Zinc shares across various facilities. The comprehensive encumbrance portfolio shows total encumbered shares representing 91.96% of promoter shareholding, with various pledge releases executed from time to time including recent releases in June and July 2025.

Share Capital Structure and Compliance

Hindustan Zinc's equity share capital comprises 4,225,319,000 equity shares of ₹ 2 each, totaling ₹ 8,450,638,000. The shares are listed on BSE Limited and National Stock Exchange of India Limited. The disclosure emphasizes that no new pledge has been created specifically for these debentures, with current encumbrance based on covenants and undertakings under the debenture trust deed.