India is considering selling as much as a 2 per cent stake in Hindustan Zinc Ltd. in a transaction that could raise up to ₹5,000 crore ($525 million), according to people familiar with the matter.
The Department of Investment and Public Asset Management, which is under the Finance Ministry, aims to launch the process this month or in July, the people said, asking not to be identified because the information is private.
ICICI Securities Ltd., Axis Capital Ltd., IIFL Capital Services Ltd. and HDFC Securities Ltd. are advising the government on the transaction, the people said.
Deliberations are ongoing and details of the offering, including its timing and size, could still change, the people said. Representatives for DIPAM, Hindustan Zinc and the banks didn’t immediately respond to requests for comment.
The government has stepped up efforts to boost revenue from selling stakes in state-owned assets. Last week, it raised about $531 million from the sale of a 2 per cent stake in Coal India Ltd., the country’s largest coal producer. Earlier this week, India raised $450 million by selling a 6 per cent stake in NHPC Ltd. It’s also planning an offering of a 2 per cent stake in Life Insurance Corporation of India that could raise as much as ₹10,000 crore ($1 billion), people familiar with the matter have said.
The government last sold a 1.6 per cent stake in Hindustan Zinc in November, raising about ₹3,500 crore. The shares were priced at ₹505 each. Since then, the stock has gained about 24 per cent, increasing the value of the remaining holding. Vedanta Ltd., the company’s controlling shareholder, owned 60.71 per cent of Hindustan Zinc as of March 31, while the government’s holding stood at 27.92 per cent, according to stock exchange filings.
Source: Reuters.com