NEW DELHI: The Union Cabinet on Wednesday approved 29.5% stake sale in Hindustan Zinc Ltd (HZL) as part of the government’s disinvestment drive, according to sources. The stake sale may fetch the Centre anywhere between Rs 34,000-Rs 36,000 crore, “The shares may be offloaded in tranches via offer for sale. DIPAM will decide the process,” sources added.
Vedanta holds 64.9% stake in HZL. As per reports, Vedanta Chairman Anil Agarwal had said that the firm may buy 5% stake after taking into account the price of shares on offer. Last year, the Supreme Court had given its green signal to the government to dilute its residual stake in HZL. The Centre in its affidavit had earlier stated the remaining shareholding of 29.54% would be sold in the open market.
At the same time, the top court had also directed the Central Bureau of Investigation (CBI) to examine the alleged irregularities in the initial transaction via which the government diluted its 26% stake in HZL, which made the privatisation of the company possible. The court had said the government can disinvest the remaining 29.5% of its shares in the firm, as it is not a government company anymore.
The apex court observed in spite of the recommendations for registration of a regular case into the alleged inconsistencies in the disinvestment in 2002, the initial inquiry was closed. SC had directed that the investigating agency should register a regular case and CBI file its periodic status report to the court.