As part of the Centre’s disinvestment strategy, the Cabinet Committee on Economic Affairs (CCEA) approved the sale of the government’s remaining interest in Hindustan Zinc Ltd (HZL) on Wednesday. According to the closing price of the company’s shares on Wednesday, the sale of the full 29.5 per cent interest in HZL would net the Centre Rs 38,062 crore.
According to an official, the government may sell its share in tranches via an offer for sale (OFS), which will be structured by the Department of Investment and Public Asset Management (DIPAM). This will assist the Centre in achieving its Rs 65,000-crore divestiture target for the fiscal year 2022-23.
Through the initial public offering (IPO) of Life Insurance Corporation of India (LIC) and the offer for the sale of Oil and Natural Gas Corporation, the Centre has received Rs 23,575 crore in divestment proceeds in the current fiscal year.
The Centre had previously stated in its affidavit that the remaining 29.54 per cent shares would be sold on the free market.
Though the sale of the remaining stake in the company was not called into question, the Supreme Court ordered the Central Bureau of Investigation (CBI) to look into the first transaction in which the government sold 26% of HZL to facilitate its eventual privatisation.
