DIPAM Expedites Sale Of Centre's Stake In Hindustan Zinc: Sources

The Department of Investment and Public Asset Management (DIPAM) under the finance ministry is looking to expedite the sale of the government's remaining stake in Hindustan Zinc. As per sources which told a leading news business channel the transaction advisors for the metals company are due to be appointed in a month's time.

Further as sources told the channel, the initial offer for sale (OFS) will be a smaller portion of the 29.5 percent government stake and the precise amount of stake sale via the OFS will be decided on a later date.

Recently, the Union Cabinet has given its go-ahead to the government to offload its 29.5% holding in Hindustan Zinc. Through the sale of its entire remaining stake in the firm, the government will get around Rs. 40,000 crore. Vedanta holds a 64.92 percent stake in Hindustan Zinc.

For the offer for sale route, the capital market watchdog SEBI permits non-promoter shareholders having over 10% stake. Now, as the centre has over 10% stake in Hindustan Zinc it has taken a decision to take the OFS route for offloading its holding in the concern.

For the Fy23, DIPAM targets Rs. 65,000 crore via divestment which it earlier looked to meet through LIC stake sale plan. Nevertheless as the centre resorted to reducing the quantum of LIC stake, it is on a hunt to general more revenue.

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