ICICI Securities, Axis Capital and Citigroup International Markets are among the many 5 funding bankers chosen to handle the sale of the federal government’s 29.53 per cent residual stake in Hindustan Zinc Ltd, an official stated on Tuesday.
Additionally, HDFC Financial institution and IIFL Securities will act as funding bankers and work with the federal government and deal with the share sale affords, the official stated. As many as 6 service provider bankers had made a presentation earlier than the federal government officers on August 12.
The official informed PTI that the 5 bankers chosen are ICICI Securities, Axis Capital, Citigroup International Markets, HDFC Financial institution and IIFL Securities.
The Division of Funding and Public Asset Administration (DIPAM) had in early July invited bids from service provider bankers for managing Hindustan Zinc Ltd (HZL) residual stake and set July 28 because the deadline for placing bids. The chosen service provider bankers will help the federal government on the timing of the divestment, get investor suggestions, and maintain investor highway exhibits, in addition to searching for regulatory approvals.
HZL was a CPSE underneath the executive management of the Mines Ministry and was privatised in 2002.
At the moment, Vedanta Ltd holds 64.92 per cent in HZL, whereas the federal government holds 29.53 per cent. Solely a 5.5 per cent stake is with the general public.
The Union Cupboard had in Might authorised the sale of 124.9 crore shares or 29.53 per cent stake the federal government holds in zinc producer HZL, which was bought to mining mogul Anil Agarwal’s Sterlite Industries in 2002.
The federal government disinvested 26 per cent of its fairness holding in HZL together with a switch of management to Sterlite Alternatives and Ventures Ltd (SOVL) on March 28, 2002.
Subsequently, as per provisions of the shareholding settlement, the strategic companion exercised its name choice, and the federal government transferred 18.92 pet cent to SOVL, which is a part of Agarwal’s Vedanta group.
Shares of HZL rose 6.85 per cent to shut at Rs 292.50 on the BSE.
On the present market worth, the sale of 124.9 crore shares would fetch about Rs 36,000 crore to the exchequer. The federal government has budgeted to lift Rs 65,000 crore by means of CPSE disinvestment within the present fiscal. Thus far this fiscal, it has realised Rs 24,544 crore.
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