Government of India has put on hold the share sale plan of Hindustan Zinc? here we know

News agency Reuters cited a senior government source to explain, “Investors need certainty about the deal and until it is finalised, the government will go ahead with its planned offer for sale.” Can’t move forward.”

The government initially planned to sell part of it within FY23 (ending March 31) to help access it. 500 billion disinvestment target for the year. But at present, looking at the deal hanging in the balance, its possibility is less visible.

Read also: Dividend-paying stock: Hindustan Zinc shares yielded 15.5% in FY23

The Cabinet Committee on Economic Affairs had approved the sale of the government’s 29.54% stake in the zinc producer. at current price of 304.65 a share, it’s worth approx 37,000 crores.

The Mines Ministry has urged Vedanta to explore other cashless methods of acquiring these assets.

Officials said the stake sale was likely to happen only after getting clarity on whether overseas zinc asset transfer is taking place and whether minority stakeholder concerns have been addressed.

Read also: Here’s why Moody’s downgrades Vedanta Resources’ corporate family rating

Vedanta had said in January that it would sell its global zinc assets to HZL for a cash consideration of $2,981 million. The decision did not go down well with the government, with the Center insisting that it had been “kept in the dark” about the deal.

The Center had also said that it will explore all legal options when it comes to the Anil Agarwal-promoted company’s plan to sell its global zinc assets to HZL.

Hindustan Zinc is an integrated producer of Zinc, Lead and Silver.

(with inputs from agencies)