Decision on OFS of Hindustan Zinc after market test, government's 29.54 percent stake in the company
Earlier, Hindustan Zinc had said it would continue to coordinate with the Center on the proposal to split the company into various units, a top official said. The company had said it was still in talks with the mines ministry on the proposal and trying to resolve some issues.
Mining Secretary VL Kanta Rao on Monday said the government is committed to selling its stake in Vedanta group company Hindustan Zinc through an offer for sale (OFS) and will decide in this regard after examining the market. The government holds a 29.54 percent stake in Hindustan Zinc. The special thing is that the statement of the ministry has come after rejecting the demerger plan of Hindustan Zinc Limited.
Rao did clarify that the company does not support the demerger in its capacity as a shareholder, though. In an attempt to boost its market valuation, the company had previously disclosed that it intended to divide its operations, which included silver and zinc, into distinct businesses. The government was able to sell the remaining portion of Hindustan Zinc on the open market in 2021 thanks to permission from the Supreme Court.
The government's ability to sell its remaining shares in Hindustan Zinc on the open market was permitted by the Supreme Court in 2021.
Earlier, Hindustan Zinc had said it would continue to coordinate with the Center on the proposal to split the company into different units, a top official said. The company had said it was still in talks with the mines ministry on the proposal and trying to resolve some issues.
The Vedanta group company had announced plans to split its businesses, including zinc and silver, into separate entities to increase its market capitalization. Rao had said, “Whatever report is before us, we as shareholders are not convinced.”
