Misra’s remarks were in response to ET’s query regarding US-based short seller Viceroy Research‘s claim that Hindustan Zinc did not take the government’s approval for its Brand Fee agreement in 2023. In its report earlier this week, Viceroy said that this would lead an ‘event of default’ as per the shareholder agreement with the government.
“The point is about deliberation where government-nominated directors attend. It goes through a number of audits. It gets vetted by legal and then it is done in the board meeting,” Misra told ET in an exclusive interaction. “The board will also ask the same question. So, had the approval been needed, it would have been taken,” he said.
While Vedanta owns 61.84% of Hindustan Zinc, the government has a 27.92% stake in the company. The company’s board also has directors nominated by the government. Earlier this week, ET had reported that these nominees are likely to ask the company about its dealings with its promoters in the aftermath of the Viceroy report. “When I opened the document, I was made to agree that it was for educational purposes-how do I take it to the board for discussion?” Misra said. He, though, acknowledged that the board meeting did have discussions related to the report.
APRIL-JUNE EARNINGS
The company also reported its earnings for the June quarter on Friday, and its consolidated net profit fell nearly 5% year-on-year to ₹2,234 crore. The bottomline, though, was higher than market expectations.
