The Finance Ministry has started the process of fresh valuation of Hindustan Zinc Ltd (HZL) in order to push through a long-pending sale of the government’s residual stake in the company in the current financial year.
The Department of Disinvestment has invited proposals from merchant bankers or chartered accountant firms with experience in handling valuation of companies.
“The government has decided to undertake fresh valuation and assessment of fair share value of HZL,” the department said. Proposals have been sought by June 27, it added.
HZL had a paid-up capital of Rs 845 crore as of March 31, 2013. The government holds 29.54 per cent stake in the company.
The government sold majority stake in the erstwhile PSU to the Vedanta group during 2001-03. At present, London-listed Vedanta holds 64.92 per cent stake in HZL.
Last October, Vedanta shareholders had approved increasing the offer to acquire the government’s remaining stake in HZL.
The Vedanta board is now empowered to make an offer of up to Rs 21,636.56 crore for the government’s stake.
At the current share price of Rs 172.50, the HZL stake sale would fetch about Rs 21,500 crore.
The department was waiting for the general elections to get over before proceeding with the appointment of valuers for HZL.