The Cabinet Committee on Economic Affairs (CCEA) on Wednesday cleared the government's 29.5 per cent stake sale in HZL, which could fetch around Rs 38,000 crore to the exchequer, sources said.
"The Cabinet Committee on Economic Affairs has approved HZL stake sale," sources said.
The decision would give a push to the government's disinvestment drive in the current fiscal. The government has budgeted Rs 65,000 crore from PSU disinvestment and strategic sale.
The sale of 29.5 per cent stake representing over 124.96 crore shares would fetch around Rs 38,000 crore to the exchequer at current market prices.
Shares of HZL closed at Rs 305.05, up 3.14 per cent on the BSE. During the day, the scrip touched a high of Rs 317.30 a share.
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Hindustan Zinc was a government-owned company till 2002. In April 2002, the government offloaded a 26 per cent stake in HZL to Sterlite Opportunities and Ventures Ltd (SOVL) for Rs 445 crore— thereby giving Vedanta group management control in HZL.
Vedanta group later bought 20 per cent from the market and another 18.92 per cent 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.
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