Hindustan Zinc Ltd shares climbed as much as 7.5% in intraday trade on Thursday, i.e. 26 September, on reports that the government may sell residual stake in the company through an offer for sale (OFS) if the Supreme Court favours the decision.
The Hindustan Zinc stock closed the session at Rs 214.40, up 6.3%, after hitting an intra-day high of Rs 216.80. Notably, the stock has lost over 27% in the last one year.
The Supreme Court’s opinion matters here as, in 2016, the apex court had stayed the efforts of the government to sell stake in Hindustan Zinc. This led to a delay in Vedanta Resources taking control of the company.
At that time, an employees union’ had approached the Supreme Court against the divestment of Hindustan Zinc. The court had then asked the reason the government was hurrying to sell stake in Hindustan Zinc.
CNBC TV18 on Thursday reported that the government is now looking for an early resolution in the Hindustan Zinc case in the Supreme Court.
The government currently holds 29.5% stake in Hindustan Zinc, while Vedanta holds 64.92% share. If the stake sale materializes, it can fetch as much as Rs 25,000 crore to the government. But this time, the stake will be sold in the open market and not to Vedanta.
Media reports suggested that the government is targeting to raise Rs 50,000 crore from asset monetisation in the current fiscal year and has set up a panel under the Cabinet Secretary for asset monetisation.
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