The public sector Hindustan Zinc Ltd (HZL) remained buoyant on selective buying on reports that the government is calling for final bids for a part of its 76 per cent stake in the company by next Wednesday.
On the Bombay Stock Exchange, the scrip price ended 3.28 per cent up at Rs 31.45. In the previous eight trading sessions, the stock had lost 6.6 per cent to Rs 30.45 on March 11 from Rs 32.60 on February 27. Volumes during the period touched a high of 12.61 lakh shares on February 28 from a low of 2.56 lakh shares on March 5.
Dealers said, "The interest at the counter was purely attributed to media reports that the government is calling for final bids for disinvestment of a 26 per cent stake in the company."
Meanwhile, analysts feel that the successful bidder is likely to be decided by March 31 and the bid for the company could be close to Rs 35 per share. Companies such as Indo Gulf Corporation, Sterlite Industries, Bhushan Steel and Strips and Phelps Dodge Corporation along with the UK-based Metdist and Zurich-based commodities group Glencore International AG are said to be bidding for HZL.
HZL is said to have six lead-zinc mines with a combined annual capacity of 3.49 million tonne, and four lead-zinc smelters with a zinc capacity of 169,000 tonne and a lead capacity of 43,000 tonne.
All the companies, which qualified to participate in the first round of bidding, are eligible to tender offers. In November 2001, the government rejected the only bid submitted in that first round, by Sterlite Industries as the amount offered was below the reserve price.
However, neither the reserve price nor the amount offered by Sterlite Industries was revealed.
