Hindustan Zinc extends gain, divestment plans gather steam

Moneycontrol Bureau

Hindustan Zinc (HZL) shares extended gains on Wednesday on top of a 3 percent rally in previous session as the process of divestment seems to be gathering steam.

Vedanta chairman Anil Agarwal, who holds 64.92 percent stake in Hindustan Zinc through Sesa Sterlite (earlier known as Sterlite Industries), told CNBC-TV18 that he is open to any method for acquiring government's residual stake in the company and Balco as well.

He has met government officials to discuss the stake sale and clarity on price for residual stake will emerge once government initiates sale process. The Government of India holds 29.54 percent stake in HZL as of June 2013 and 49 percent in Balco.

Meanwhile, Department of Economic Affairs secretary Arvind Mayaram on Monday said that decks have been cleared for the Hindustan Zinc and Balco stake sale and now it's up to the mines ministry to take a final call. The finance ministry expects to rake in Rs 25000 crore from this stake sale.

Mines minister Dinsha Patel today said the mines ministry has been doing a detailed study for stake sale in both companies. "We will submit report to prime minister's office on stake sale," he added.

Agarwal had already offered more than Rs 17,000 crore for government's residual stake in both companies. In the beginning of September, there were rumours that he has increased his offer by 10 percent.

Meanwhile, HZL had reported profit of Rs 1660.45 crore on revenues of Rs 2939.41 crore for the quarter ended June 2013 as against net profit of Rs 1581.34 crore on revenues of Rs 2712.67 crore in a year ago period.

At 11:54 hours IST, the stock was quoting at Rs 132.80, up 0.95 percent on the Bombay Stock Exchange.

(Posted by Sunil Shankar Matkar)