Moneycontrol Bureau
Shares of Hindustan Zinc fell over 4 percent intraday on Tuesday as government will divest its remaining stake only in FY15. Economic Affairs Secretary Arvind Mayaram has said that disinvestment of government's remaining stake in Hindustan Zinc and Balco will happen in next fiscal year.
The government owns 29.5 percent in Hindustan Zinc and 49 percent in Balco while London-listed Vedanta Resources hold majority in both the companies.
The stake sale is likely to be through auction route as the Cabinet Committee on Economic Affairs (CCEA) has already given its approval government’s stake sale.
Meanwhile, presenting Vote on Account in Parliament, Finance Minister P Chidambaram slashed disinvestment target by more than half to Rs 16,027 crore for the current financial year and pegged it at Rs 36,925 crore for 2014-15.
The government has so far managed to raise around Rs 3,500 crore from divestment proceeds.
Meanwhile, the government’s stake sale in Axis Bank through Specified Undertaking of Unit Trust of India (SUUTI) is likely to be completed this fiscal itself. It holds stake in three companies, L&T, ITC and Axis Bank through SUUTI.
At 10:31 hrs Hindustan Zinc was quoting at Rs 120.05, down Rs 3.20, or 2.60 percent.
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