The government has been conducting roadshows across major financial capitals, including Mumbai, London, Boston, and New York, over the past 15 days to assess the market and engage with investors regarding the sale of its stake in Hindustan Zinc Ltd (HZL), a Vedanta Group company. Currently, the government holds a 29.5% stake in the company, making it the largest minority shareholder.
Mines Secretary V L Kantha Rao confirmed that the roadshows are part of the government’s commitment to the disinvestment of its stake in Hindustan Zinc. He emphasized that these roadshows are helping the government evaluate the market conditions before finalizing the offer for sale (OFS).
When asked about the timeline and percentage of the stake to be sold, Rao said, “Let the roadshows be completed first. There is a proper mechanism in place, and a committee will take the final decision.”
In 2021, the Supreme Court allowed the government to sell its remaining stake in Hindustan Zinc through the open market.
Meanwhile, Hindustan Zinc has been in discussions with the government about restructuring the company into two verticals, according to CEO Arun Misra. This comes after an earlier plan to divide the company into three verticals was put on hold due to government resistance.
The Vedanta-owned company recently declared a second interim dividend of ₹19 per share for FY25, amounting to ₹8,028 crore. In the first quarter of FY25, Hindustan Zinc reported a 19.4% increase in consolidated net profit at ₹2,345 crore.
Hindustan Zinc is a global leader in zinc and silver production, with a significant share in India’s zinc market and a presence in over 40 countries.
