The Cabinet Committee on Economic Affairs (CCEA) endorsed the offer of 124.9 crore shares government holds in the zinc maker which was offered to mining tycoon Anil Agarwal’s Sterlite Industries in 2002.
The Union Cabinet on Wednesday supported the offer of the public authority’s leftover 29.58 percent stake in Hindustan Zinc Ltd, which at current costs would get over ₹ 38,000 crore to the exchequer, sources said.
The Cabinet Committee on Economic Affairs (CCEA) endorsed the offer of 124.9 crore shares government holds in the zinc maker which was offered to mining magnate Anil Agarwal’s Sterlite Industries in 2002.
Sources with direct information on the advancement said the stake deal modalities will be chosen by the DIPAM.
The choice would give a push to the public authority’s disinvestment drive in the current financial. The public authority has planned ₹ 65,000 crore from PSU disinvestments and key deals.
It has previously got somewhat finished ₹ 20,500 crore from offer of its 3.5 percent stake in Life Insurance Corporation (LIC).
HZL has been taken up after privatization of Bharat Petroleum Corporation Ltd (BPCL) got slowed down following two of the three bidders leaving the challenge.
Other key disinvestments like Shipping Corporation of India (SCI) are confronting procedural postponements.
The public authority had in 2002 sold its 26% shareholding alongside the executives control to Sterlite, which is important for Mr Agarwal’s Vedanta bunch, for ₹ 40.5 per share. After a year, one more 18.92 percent was purchased by the mining combination.
In the two exchanges, the public authority got around ₹ 769 crore.
Vedanta practiced a call choice according to the offer buy understanding yet the public authority challenged it. The firm hauled the public authority to mediation yet later pulled out it, making ready for the stake deal.
Last month, Mr Agarwal let PTI know that his gathering can’t buy more than 5% of the public authority’s leftover stake in HZL except if the conditions of the agreement are changed.
He had demonstrated that his gathering will think about purchasing the whole stake assuming the terms are altered and the shareholding is proposed to it.
The offer of a 29.5 percent stake addressing over 124.96 crore offers would get around ₹ 38,000 crore to the exchequer at current market costs.
Portions of HZL shut at ₹ 305.05, up 3.14 percent on the BSE. During the day, the scrip contacted a high of ₹ 317.30 an offer.
HZL was an administration possessed organization till 2002.
In April 2002, the public authority offloaded a 26 percent stake in HZL to Sterlite Opportunities and Ventures Ltd (SOVL) for ₹ 445 crore – – consequently giving Vedanta bunch the executives control in HZL.