Shares of Hindustan Zinc Ltd. are facing immense pressure in trade on Friday on the back of a Bloomberg report that claims tha the government may sell 2% of their stake in the company.
The stock is trading at Rs 569, accounting for cuts of more than 5% compared to Thursday's closing price. The stock has fallen more than 5% on a year-to-date basis.
This pressure comes on the back of Bloomberg claiming that the The Department of Investment and Public Asset Management, under the Finance Ministry, is aiming to sell 2% of their stake in the company. ICICI Securities Ltd., Axis Capital Ltd., IIFL Capital Services Ltd. and HDFC Securities Ltd. are advising the government on the transaction.
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It must be noted that the government had last sold a 1.6% stake in Hindustan Zinc in November, raising about 35 million
The government last sold a 1.6% stake in Hindustan Zinc in November, raising about Rs. 3,500 crore at Rs. 505 per share. The stock has gained about 24% since then. Vedanta Ltd., the controlling shareholder, owned 60.71% as of March 31, while the government held 27.92%, according to exchange filings.
The move follows a string of stake sales as the government steps up revenue from state assets, including a 2% stake in Coal India Ltd. last week.
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