HZL shares spurt as CCEA approves sale of Govt’s residual stake

PTI Updated - January 21, 2014 at 03:27 PM.

Shares of Hindustan Zinc today rose almost 7 per cent in the morning trade after the Cabinet Committee on Economic Affairs (CCEA) approved the sale of the Government’s residual stake in HZL.

After making a positive opening, the shares further rallied 6.97 per cent to Rs 141.80 — its 52-week high on the BSE. On the NSE, the stock rose 6.68 per cent to touch a one-year high of Rs 142.

At 2.23 p.m. local time, the stock was trading up 2.83 per cent at Rs 136.30 on the BSE and higher by 2.29 per cent at Rs 136.15 on the NSE.

The CCEA had yesterday approved the sale of the Government’s residual stake in Hindustan Zinc (HZL), currently valued at about Rs 16,500 crore, ending months of uncertainty on the issue.

The Government sold a majority stake in the nation’s largest zinc maker to Anil Agarwal-led Vedanta Resources in 2002. It continues to hold a 29.5 per cent stake in the company, which Vedanta sought to acquire.

With a market capitalisation of Rs 56,006 crore, the Government’s stake in HZL is valued at Rs 16,521.77 crore.

Published on January 21, 2014 09:00