Cabinet Approves The Sale of Hindustan Zinc’s 29.5 Percent Stake For Rs 38,000 Crore

Hindustan Zinc

According to sources, the Cabinet Committee on Economic Affairs (CCEA) approved the government’s sale of a 29.5% share in Hindustan Zinc Limited (HZL) to the exchequer on Wednesday. “HZL stake sale has been approved by the Cabinet Committee on Economic Affairs,” sources added.

The move will help the government’s disinvestment programme in this fiscal year. PSU disinvestment and strategic sales have cost the government 65,000 crore.

At current market prices, selling 29.5 percent of the company, or 124.96 crore shares, would net the government approximately 38,000 crore.

On the BSE, HZL shares closed at 305.05, up 3.14 percent. The stock hit a high of 317.30 per share during the day.

Until 2002, Hindustan Zinc was a government-owned enterprise. The government sold a 26% share in HZL to Sterlite Opportunities and Ventures Ltd (SOVL) for 445 crore in April 2002, giving Vedanta group management control of the company.

In November 2003, the Vedanta company purchased 20 percent from the market and another 18.92 percent from the government, bringing its total stake in Hindustan Zinc to 64.92 percent.

Vedanta, helmed by mining magnate Anil Agarwal, recently stated that given the price of the shares on offer, the company can only buy a 5% further investment in HZL

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