Government initiates Hindustan Zinc valuation process

The finance ministry has started the process for fresh valuation of Hindustan Zinc Ltd (HZL), seeking to push through a long-pending sale of the government's residual stake in the company in the current financial year.

The Department of Disinvestment has invited proposals from merchant bankers or chartered accountant firms with experience in handling valuation of companies.

"The government has decided to undertake fresh valuation and assessment of fair share value of HZL," the department said. Proposals have been sought by June 27, it added.

HZL had a paid-up capital of Rs 845 crore as of March 31, 2013. The government holds a 29.54 per cent stake in the company.

The government sold majority stakes in the erstwhile PSU to the Vedanta group during 2001-03. At present, London-listed Vedanta holds a 64.92 per cent stake in HZL.

Last October, Vedanta shareholders approved increasing the offer to acquire the government's remaining stake in HZL.

The Vedanta board is now empowered to make an offer of up to Rs 21,636.56 crore for the government's stake.

At the current share price of Rs 172.50, the HZL stake sale would fetch about Rs 21,500 crore.

The department was waiting for the general elections to get over before proceeding with the appointment of valuers for HZL.

EDITORIAL OF THE DAY

  • Right to reveal

    Delhi is India’s first state to announce a scheme for witness protection. But what about the witnesses in other states?

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

TODAY'S COLUMNS

Urs Schoettli

New masters of the Financial Times

A few days ago, Japan’s leading financial daily Nihon Keizai ...

Anuja Sharma

Focus mindfully to get the result

Have you ever tried to light a fire using the ...

Gautam Gupta

Our fashion schools need to notch it up

“Creativity is the key to success and primary education is ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture