Vedanta 'Big Contender' for Government's Residual Stake in Hindustan Zinc: Chairman

Bhubaneswar: Vedanta group, which holds a majority stake in Hindustan Zinc Ltd, has it is a "big contender" for government's residual stake in Hindustan Zinc Ltd (HZL) and that it would bid for the same.

"The government has started the process of valuation of its residual stake in HZL as it wants to go for a public offer," Vedanta Resources chairman Anil Agarwal told reporters in Bhubaneswar on Tuesday.

Stating that Vedanta would bid for the government stake during public offer after the valuation and assessment is complete, he said, "We are a big contender... We will certainly bid for it."

The Vedanta group chief expressed hope that the process would be completed in 2-3 months.

The Finance Ministry has started the process for fresh valuation in its effort to push through a long-pending sale of the government's residual stake in the company in the current financial year, sources said.

HZL had a paid-up capital of Rs 845 crore as on March 31, 2013. The government holds a 29.54 per cent stake in the company. Government had earlier sold a majority stake in the erstwhile PSU to the Vedanta group.

Metal major Sesa Sterlite on Monday sought shareholders' nod to enhance its borrowing limit to Rs 80,000 crore for funding needs in group firms and buying out government's residual stake in Hindustan Zinc and Balco.

The Anil Agarwal-led firm's board has, in the last week, already passed an enabling resolution to increase the limit by 33.3 per cent from Rs 60,000 crore.

It said in a filing to the BSE that the enhancement of limit was aimed at meeting funding requirements of all the group divisions such as iron ore, iron making, copper, aluminium production and commercial power generation.