Hind Zinc shares jump on govt.’s stake sale decision

Hind Zinc shares jump on govt.’s stake sale decision

Stock in Hindustan Zinc Ltd gained as much as 5 per cent in early morning trade on Tuesday, a day after the government approved a stake sale in the company.

The government owns a 29.5 per cent stake in the Hindustan Zinc, which is controlled by billionaire Anil Agarwal Vedanta Resources.

London-listed Vedanta gained the support of its shareholders in October last year to acquire the government's minority stakes in Hindustan Zinc as well as Bharat Aluminium Co for up to $3.48 billion.

As of 09.17 a. m., shares in the world's second-biggest zinc producer, traded at a gain of 5.1 per cent at Rs 139.30 apiece on the Bombay Stock Exchange (BSE).

The union government's cabinet approved the stake sale in a meeting on Monday. The stake sale will take place via the auction route. At the last trade price of Rs 135 apiece, the government is expected to pocket nearly Rs 17,000 crore for the sale of its stake.

The stake-sale is part of the government's efforts to boost its financial condition and narrow its fiscal deficit. The government aims to generate nearly Rs 55,000 crore by selling its stakes in public sector companies by the end of current fiscal year. But, the stake-sale programme has so far fetched merely 3 per cent of the target.

Tagged with