Hindustan Zinc slips on buzz Govt defers disinvestment

Hindustan Zinc fell 2.31% to Rs 120.40 at 14:40 IST on BSE on reports that the government may not complete its sale of minority stakes in the company this fiscal year.

Meanwhile, the BSE Sensex was up 190.59 points, or 0.93%, to 20,654.65.

On BSE, so far 1.69 lakh shares were traded in the counter, compared with an average volume of 1.95 lakh shares in the past one quarter.

The stock hit a high of Rs 122 and a low of Rs 117.95 so far during the day. The stock hit a 52-week high of Rs 141.80 on 21 January 2014. The stock hit a 52-week low of Rs 94 on 2 August 2013.

The stock had underperformed the market over the past one month till 17 February 2014, sliding 4.79% compared with the Sensex's 2.85% fall. The scrip had underperformed the market in past one quarter, falling 5.08% as against Sensex's 0.32% rise.

The large-cap company has an equity capital of Rs 845.06 crore. Face value per share is Rs 2.

According to reports, the government may not complete its sale of minority stakes in Hindustan Zinc (HZL) and Bharat Aluminium (Balco) this fiscal year.

The government has proposed to sell all of its 29.5% stake in HZL and its 49% holding in Balco through open auction which were together expected to fetch about Rs 20000 crore. The companies are majority owned by Anil Agarwal's Vedanta Group.

However, economic affairs secretary Arvind Mayaram was quoted by media as saying that the decision to disinvest in Hindustan Zinc and Balco stands, adding that the process requires time and may not be completed before 31 March 2014.

As on 31 December 2013, the government held a 29.54% stake in Hindustan Zinc that is controlled by London-listed Vedanta Resources Plc. Vedanta Group controlled Sesa Sterlite held 64.92% stake.

Hindustan Zinc's net profit rose 7% to Rs 1723 crore on 9% growth in net sales to Rs 3410 crore in Q3 December 2013 over Q3 December 2012.

Hindustan Zinc, a Vedanta Group company in zinc-lead-silver business, is India's only and the world's largest integrated producer of zinc.

Powered by Capital Market - Live News