Hindustan Zinc privatisation plan back on the table
ET Now reported that the government is planning residual stake sale in the company.
ET Now reported that the government is planning residual stake sale in the company and seeking legal opinion on the same. The Centre has approached Attorney General of India for his views.
The legal opinion is being sought as Supreme Court had in 2016 stayed the efforts of the government to sell stake in the company. This delayed Vedanta Resources to take total control of the zinc maker.
National Confederation of Officers’ Association, an employees union was against the divestment. The court, addressing the plea of the union, had asked why the government was in a hurry to sell the stake.
This time around, the government wants to sell stake in Hindustan Zinc in open market and not directly to Vedanta. The sale, if proceed, can garner as much as Rs 25,000 crore to the exchequer.
The government owns 29.58 per cent stake in the company and Vedanta has 64.92 per cent.
The shares of the company closed 5.62 per cent higher at Rs 213.15 on BSE.