CNBC-TV18's Anshu Sharma reports that the mines ministry has once again cited the law ministry’s views, that a stake sale is not tenable unless the act is amended.
Attorney General Goolam Vahanvati may have paved the way for the sale of the government’s residual stake in Hindustan Zinc to Vedanta, but the Mines Ministry has written a fresh letter to the Prime Minister’s Office, opposing any further stake sale without amending the Metals Corporation Act of 1976.
CNBC-TV18’s Anshu Sharma reports that the ministry has once again cited the law ministry’s views - a stake sale is not tenable unless the act is amended.
This comes as a setback to Vedanta, which has already taken shareholder approval for purchasing the balance government stake in HZL and Balco for a sum of Rs 25,000 crore.
Unless this objection is overcome, the government’s intent of mopping up revenue through this sale is unlikely to fructify any time soon.
Hind Zinc stock price
On July 23, 2014, Hindustan Zinc closed at Rs 166.60, down Rs 1.8, or 1.07 percent. The 52-week high of the share was Rs 184.00 and the 52-week low was Rs 94.00.
The company's trailing 12-month (TTM) EPS was at Rs 16.24 per share as per the quarter ended June 2014. The stock's price-to-earnings (P/E) ratio was 10.26. The latest book value of the company is Rs 88.56 per share. At current value, the price-to-book value of the company is 1.88.
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