Govt May Delay Hindustan Zinc Share Sale: Report

Centre is reportedly in talks to postpone the plan of selling its stake in Hindustan Zinc, following the merchant bankers' advice to wait until the industry fortune turnaround, said a media report on Wednesday.

It added that the government wants to push the long-delayed sale this financial year.

The government will start with the 5 per cent stake sale from the 29 per cent stake it has determined to sell in tranches. Vedanta Group holds a 64.9 per cent stake, as per the reports.

Meanwhile, there is a decline of over 16 per cent in Hindustan Zinc's stock from the highs in January due to a sharp drop in zinc prices and Vedanta’s attempt of selling two units to the miner. The stock nature has kept the government waiting for the share price to recover, the reports said additionally.

It said the merchant bankers have advised a ‘no’ for the sale considering the institutional investors' low interest in investing in the metal sector currently. The advice came following road shows that were conducted in June, the report underlined.

Earlier also the government's plan to sell Hindustan Zinc’s 5 per cent stake last financial year was delayed due to the declined prices.