The government has decided to undertake fresh valuation and assessment of fair share value of HZL to reduce or sell its entire 29.5% stake in the Vedanta group company
The Finance Ministry has started the process for a 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 the fair share value of HZL," the department said. Proposals have been sought by 27th June, it added.
HZL had a paid-up capital of Rs845 crore as of 31 March 2013. The government holds a 29.54% stake in the company.
The government sold its majority stake in the erstwhile public sector unit to the Vedanta Group during 2001-03. At present, London-listed Vedanta holds a 64.92% 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 Rs21,636.56 crore for the government's stake.
At the current share price of Rs172.50, the HZL stake sale would fetch about Rs21,500 crore.
The department was waiting for the general elections to get over before proceeding with the appointment of valuers for HZL.
Hindustan Zinc closed 2.8% higher on Friday, at a price of Rs173 on the BSE, while the S&P BSE Sensex too ended the day 1.5% up at 25,396.
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