Govt moves to sell stake in Vedanta-controlled Hindustan Zinc

The government, starting the process of its selling its remaining stake sale in Hindustan Zinc Ltd, majority owned by Anil Agarwal's Vedanta Resources, said on Wednesday that it will appoint valuers to assess the worth of its stake in the company before auction.

The department of disinvestment has invited bids from merchant bankers who would advise it in selling its 29.54-per cent stake in the company.

The merchant bankers would have to suggest the timing of the open auction, conduct market survey and ensure best return to the government, reports said.

Last month, the union cabinet had cleared the sale of its stake in HZL through an open auction (See: CCEA approves sale of government's residual stake in Hindustan Zinc).

At the current price of Rs125.25 per share, the stake sale would fetch the government over Rs15,500 crore. However, the final revenue realisation could be higher as its present owner Vedanta could pay a higher price for the 29.54 per cent stake.

During 2001-03, the government had sold a majority stake in the former public sector undertaking to the Vedanta Group. At present, London-listed Vedanta holds 64.92 per cent stake in HZL.

Last October, shareholders of Vedanta gave their nod to raise offers for acquiring the remaining government stake in HZL. The Vedanta Board is now empowered to make an offer of up to Rs21,636.56 crore for the remaining government stake in HZL.