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Hindustan Zinc hits 52-week high on Cabinet nod for govt's residual stake sale

The government holds a 29.5% stake is likely to raise about Rs 20,000 crore via stake sale in Hindustan Zinc.

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SI Reporter Mumbai
Last Updated : Jan 21 2014 | 9:28 AM IST
Hindustan Zinc has surged over 5% to Rs 139 on the BSE after the Cabinet Committee on Economic Affairs (CCEA) approved the sale of residual stake in the company.

The government holds a 29.5% stake in Hindustan Zinc, the world's second-largest zinc producer that is controlled by Anil Agarwal's Vedanta Group.

“The move might help the government, struggling to contain its fiscal deficit at 4.8% of gross domestic product this financial year, raise about Rs 20,000 crore”, the Business Standard report suggests.

The news is positive for Hindustan Zinc stock. Also, the stake sale is positive for Hindustan Zinc’s parent company Sesa Sterlite which holds 65% stake in Hindustan Zinc, said analyst at Angel Broking in a note.

The stock opened at Rs 142, also its 52-week high price, has seen huge trading activity on the counter. A combined over one million shares have already changed hands in early morning deals on the BSE and NSE.
 

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First Published: Jan 21 2014 | 9:25 AM IST

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