Cabinet has approved the sale of 29.5 percent stake of the government in Hindustan Zinc Limited
New Delhi:
The Cabinet Committee on Economic Affairs (CCEA) on Wednesday approved sale of the government’s 29.5 per cent stake in Hindustan Zinc Limited (HZL), which could fetch around Rs 38,000 crore to the exchequer.
“The Cabinet Committee on Economic Affairs has approved the stake sale of HZL,” sources said.
This decision will give a boost to the government’s disinvestment drive in the current financial year. The government has budgeted Rs 65,000 crore from PSU disinvestment and strategic sale.
The sale of 29.5 per cent stake, representing over 124.96 crore shares, would fetch about Rs 38,000 crore to the exchequer at the current market price.
Shares of HZL closed at Rs 305.05, up 3.14 per cent on the BSE. The stock touched a high of Rs 317.30 per share during the day.
Hindustan Zinc was a state-owned company until 2002. In April 2002, the government sold a 26 percent stake in HZL to Sterlite Opportunities and Ventures Limited (SOVL) for Rs 445 crore—giving Vedanta Group management control in HZL.
The Vedanta group subsequently bought another 20 per cent from the market in November 2003 and another 18.92 per cent from the government, taking its ownership of Hindustan Zinc to 64.92 per cent.
Vedanta, led by mining magnate Anil Agarwal, had recently said the company may buy only an additional 5 per cent stake in HZL, considering the price of the shares on offer.
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