Government moves to sell remaining stake in Hindustan Zinc

Mumbai: The finance ministry has proposed the sale of the government''s remaining shares in Hindustan Zinc Ltd to the public. The cabinet committee on economic affairs is likely to take up the issue at its next meeting.

The government has 29.53 per cent stake in Hindustan Zinc and the sale is expected to bring in over Rs7,200 crore for the exchequer.

HZL share price has more than doubled in the past 8-9 months. The company''s shares currently rule at around Rs584 against Rs40.51 during the earlier stake sale in 2002.

The plan is to offload government stake before April next year as after which Sterlite, the strategic partner in HZL, would get a call option to acquire it. The cabinet has already circulated a note to this effect, reports said.

Hindustan Zinc Ltd (HZL), India''s leading zinc producer and the only integrated zinc producer in India, is majority owned by Sterlite Industries, flagship company of Vedanta Resources, a London-listed metals and mining major with aluminium, copper and zinc operations in the UK, India and Australia,

HZL has a refined zinc production capacity of 411,000 tonnes per annum and refined lead production capacity of 85,000 tpa and has the advantage of own mineral resources and related core competencies.