The demerger will see individual businesses find their true market value but how debt will be apportioned and how it will address the promoters’ debt challenge is unclear.
The government currently holds a 29.54 per cent stake in HZL, while a 5.54 per cent stake is with public shareholders.
The offer size for the Hind Zinc divestment will be decided closer to the transaction, sources have told CNBC-TV18. They added the Indian Railways will also seek cabinet nod for its land lease policy
Trends on SGX Nifty indicate a positive opening for the broader index in India, a rise of 28.5 points or 0.27 percent. Nifty futures were trading around 10,681 -level on the Singaporean Exchange.
Here are top 10 stocks to focus on January 12 – Marico Industries, Hindustan Unilever (HUL), Infosys, United Spirits Ltd (USL), LIC Housing Finance, Adani Enterprises, Sesa Sterlite, Hindustan Zinc Limited, Cairn India, Kansai Nerolac Paints and Pipavav Defence.
The Secretary also said the government was "not looking" at selling its stake in either L&T or ITC held through SUUTI at this point of time.
Hindustan Zinc Limited (HZL) was incorporated after the erstwhile Metal Corporation of India was nationalised through the Metal Corporation (Nationalisation and Miscellaneous Provisions) Act, 1976 via the Parliament.
The matter of residual stake sale of HZL to be decided by Cabinet Committee on Economic Affairs (CCEA).
The mines ministry sources have told CNBC-TV18 that any dilution of section 111A of the Companies Act will weaken the government‘s case. The government is defending three cases on Balco and Hindustan Zinc Limited (HZL) call options, reports CNBC-TV18‘s Anshu Sharma.