Cabinet approves sale of govt stake in Hindustan Zinc: Report
The government holds 29.54 percent stake in the firm
The consolidated income of Hindustan Zinc during the January-March period increased to Rs 9,074 crore from Rs 7,242 crore in the year-ago period./ Representative image |
The Union Cabinet has approved the remaining government stake sale in Hindustan Zinc, according to news reports.
The Cabinet Committee on Economic Affairs (CCEA) has approved the sale of its remaining 29.5 percent stake in Hindustan Zinc. The government holds 29.54 percent stake in the firm. The stake is valued at Rs 38,000 crore to the exchequer, sources said.
The government had offloaded 26 percent stake in the firm in 2002, which was bought by Vedanta Group. The Group later acquired further stake in the company to take its holding to 64.92 percent.
The decision would give a push to the government's disinvestment drive in the current fiscal. The government has budgeted Rs 65,000 crore from PSU disinvestment and strategic sale.
Hindustan Zinc was a government-owned company till 2002. In April 2002, the government offloaded a 26 per cent stake in HZL to Sterlite Opportunities and Ventures Ltd (SOVL) for Rs 445 crore— thereby giving Vedanta group management control in HZL.
Vedanta, led by mining magnate Anil Agarwal, recently said the company can buy just 5 percent additional stake in the HZL considering the price of the shares on offer.
Shares of HZL closed at Rs 305.05, up 3.14 per cent on the BSE. During the day, the scrip touched a high of Rs 317.30 a share.
Published on: Wednesday, May 25, 2022, 04:39 PM ISTRECENT STORIES
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