Cabinet Committee on Economic Affairs (CCEA) has approved the government’s 29.5% stake sale in Hindustan Zinc Ltd (HZL). The sale of a 29.58% stake represents more than 124.96 crore shares which would raise around Rs 38,000 crores at the current market price. This decision will strengthen the government’s disinvestment drive in the current fiscal year. The government has budgeted 65,000 crores from PSU disinvestment and strategic sale. Shares of HZL closed at ₹305.05, up 3.14% on the BSE. During the day, the scrip touched a high of ₹317.30 a share.
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History of Hindustan Zinc Limited business:
- Till April 2002, the Hindustan Zinc Limited (HZL) was a government-owned company. In 2002, the government offloaded a 26% stake in HZL to Sterlite Opportunities and Ventures Ltd (SOVL).
- Vedanta group later bought 20% from the market and another 18.92% from the government in November 2003, raising its ownership in Hindustan Zinc to 64.92 per cent.
- Vedanta, led by mining magnate Anil Agarwal, recently said the company can buy just 5 per cent additional stake in the HZL considering the price of the shares on offer.
Important takeaways for all competitive exams:
- Hindustan Zinc Limited Chairman: Kiran Agarwal;
- Hindustan Zinc Limited Headquarters: Udaipur, Rajasthan.