Vedanta has 5% cap in Hindustan Zinc residual stake sale: Anil Agarwal

Anil Agarwal, founder and Chairman of Vedanta Resources Limited, spoke to CNBC-TV18's Shereen Bhan about the BPCL divestment and the sale of the Government's residual stake in the Hindustan Zinc.
He said that he could only buy a 5 per cent additional stake in Hindustan Zinc, and when asked about commodity prices, he said that Inflation is only going to accelerate.

Here's the edited excerpt from the interview: As you were hoping for BPCL, but that's off the table now. Will you still be interested once it's back on the table?

Agarwal: Privatisation of companies like BPCL will create more value and revenue for the Government. See the privatisation that happened in the UK by privatising British Airways and British Petroleum. Along the same line Government can give around 20 per cent of the Indian companies for privatisation. There is a chance of creating 5 times more value by doing so. This is why I am very optimistic.

It seems like wheels are finally moving on the residuals stake sale of Hindustan Zinc. Have you heard from the Government on that? Agarwal: We know just as much as you do. We are waiting for the Government's announcement.

Have you got the funding ready for the Hindustan Zinc residual stake sale?

Agarwal: We are not the buyer, it will come to the market, and the market will buy. We can't buy more than an additional 5 per cent stake in the Hindustan Zinc out of the 26 per cent.