Home / News / India /  ICICI Sec, Axis Cap among 5 bankers to assist govt's 29.5% stake sale in Hindustan Zinc
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Five investment bankers including, ICICI Securities, Axis Capital and Citigroup Global Markets, are among the selected to assist the government in offloading its 29.53% residual stake in Hindustan Zinc Ltd (HZL) in tranches.

An official on Tuesday said that HDFC Bank and IIFL Securities will act as investment bankers and work with the government and handle the share sale offers. 

Around six merchant bankers had made a presentation before the government officials on 12 August.

The five merchant bankers selected are – ICICI Securities, Axis Capital, Citigroup Global Markets, HDFC Bank and IIFL Securities.

DIPAM or the Department of Investment and Public Asset Management had in early July invited bids from merchant bankers for managing HZL residual stake and set 28 July as the deadline for putting bids. 

The five investment bankers will help the Centre on the timing of the divestment, get investor feedback, and hold investor road shows, besides seeking regulatory approvals.

HZL was a CPSE under the administrative control of the Mines Ministry and was privatised in 2002.

At present, Vedanta Ltd holds 64.92% in HZL, while the Centre holds 29.53%. Only a 5.5% stake is with the public.

Back in May, the Union Cabinet had approved the sale of 124.9 crore shares or 29.53% stake the government holds in zinc producer HZL, which was sold to mining mogul Anil Agarwal's Sterlite Industries in 2002.

The Centre disinvested 26% of its equity holding in HZL along with a transfer of control to Sterlite Opportunities and Ventures Ltd (SOVL) on March 28, 2002.

Subsequently, as per provisions of the shareholding agreement, the strategic partner exercised its call option, and the government transferred 18.92% to SOVL, which is part of Agarwal's Vedanta group.

Meanwhile, shares of HZL rose 6.91% to close at 292.60 on the National Stock Exchange.

At the current market price, the sale of 124.9 crore shares would fetch around 36,000 crore to the exchequer. 

India has budgeted to raise 65,000 crore through CPSE disinvestment in the current financial year. Till now, it has realised about 24,544 crore.

Meanwhile, HZL recently reported a 55.9% rise in consolidated net profit at 3,092 in the June quarter, mainly on the back of higher metal prices.

The company had posted consolidated net profit of 1,983 crore in the first quarter of the previous fiscal, it said in a filing to BSE.

With agency inputs

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