Sources gave this information on Wednesday.
Sources said the CCEA has approved the sale of government’s stake in Hindustan Zinc.
The move will help the government achieve its disinvestment target in the current financial year. The government has set a target of raising Rs 65,000 crore in the current financial year through disinvestment and strategic sale of PSUs.
Sources said that 124.96 crore shares will be sold under 29.5 percent stake sale. With this, the government can get Rs 38,000 crore at the current price.
Shares of Hindustan Zinc on Wednesday closed at Rs 305.05, up 3.14 per cent on the BSE. During the day’s trading, it had gone up to a high of Rs 317.30.
Hindustan Zinc was a government-owned company until 2002. In April 2002, the government transferred its 26 per cent stake in Hindustan Zinc to Sterlite Opportunities & Ventures Ltd. (SOVL) for Rs 445 crore. This put the management control of the company with Vedanta Group.
The Vedanta group later bought another 20 per cent stake in the company from the market. Subsequently, in November 2003, the group acquired another 18.92 per cent stake in the company from the government. This increased Vedanta’s stake in Hindustan Zinc to 64.92 per cent.
Anil Agarwal-led Vedanta had recently said that given the value of the company’s shares, Hindustan may buy only five per cent more stake in Zinc.
Source: navbharattimes.indiatimes.com
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