Govt steps up HZL stake sale efforts

The central government is likely to begin international roadshows starting with the US this month for the sale of its residual 29.54 per cent stake in erstwhile public-sector company Hindustan Zinc Ltd (HZL), an official said.

The government had decided to exit the zinc maker last year, but the plan hit a roadblock because of the firm’s owner, billionaire Anil Agarwal’s Vedanta Ltd proposal.

Vedanta wanted to sell its global zinc assets to HZL in a move that many analysts saw as an attempt to tap into the erstwhile state-run firm’s huge cash pile.

The government, which has a directorial position on HZL, opposed the move over valuation concerns. The Vedanta proposal expired last month and now the government is looking to move ahead with its own plan. The Department of Investment and Public Asset Management (DIPAM) is now looking at expediting an offer-for-sale (OFS), through which the residual stake would be sold to institutional as well as public investors, the official said.