Govt initiates valuation process for Hindustan Zinc stock sale
06 June 2014
The finance ministry has started a fresh valuation process for Hindustan Zinc Ltd (HZL) in order to push through the sale of government's residual stake in the company in the current financial year.
The government still holds a 29.5-per cent stake in Hindustan Zinc Ltd (HZL) after it sold a majority stake in the two erstwhile PSUs, HZL and Bharat Aluminium Company Ltd (Baalco) to Vedanta group in 2001-03.
''The government has decided to undertake fresh valuation and assessment of fair share value of HZL,'' the department said.
The Department of Disinvestment has invited proposals from merchant bankers or chartered accountant firms with experience in handling valuation of companies. Proposals have been sought by 27 June, it added.
HZL had a paid-up capital of Rs845 crore as of 31 March 2013 of which, the government holds 29.54 per cent.
London-listed Vedanta holds 64.92 per cent stake in HZL after the government sold a majority stake in the erstwhile PSU to the Vedanta group during 2001-03.
Vedanta shareholders had, in October last year, approved increasing the offer to acquire the government's remaining stake in HZL.
The Vedanta board is now empowered to make an offer of up to Rs21,636.56 crore for the government's stake.
At the current share price of Rs172.50, the HZL stake sale would fetch about Rs21,500 crore.
The department was waiting for the general elections to get over before proceeding with the appointment of valuers for HZL.