The inter-ministerial group decides the final Hindustan Zinc valuation and that may also include individual mining assets. IMG, chaired by the secretary of the department of disinvestment and secretary of mines has decided and the valuation is going to be higher than what the current share price is.
According to sources, the meeting that was held on February 7, IMG actually took note of the fact that Prashant Bhushan had written a letter to the finance minister in 2012 alleging that HZL has been under-valued at the time of first divestment and the valuation of various mining assets were not kept in mind.
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Also, IMG noted that the CBI has registered a preliminary enquiry against the first disinvestment that had taken place on November 6, 2013. Therefore, keeping that in mind the IMG has now decided that whatever the fair valuation will be of HZL, it must include all its assets along with individual mining assets.
It is not going to be just the share price. It is a listed stock. IMG is of the view that if the valuation is high and is kept sufficiently high, it will ensure that the bids will be received from only good quality firms. This meeting was also to discuss how bankers and merchant bankers, legal advisers will be decided and the valuation process.
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