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.
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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