Vedanta big contender for govt's residual stake in HZL: Agarwal
Stating that Vedanta would bid for the government stake during public offer after the valuation and assessment is complete, Agarwal said: 'We are a big contender... We will certainly bid for it.'
Bhubaneswar: Vedanta group, which holds majority stake in Hindustan Zinc Ltd, today said it would bid for the government's residual stake in HZL and is a "big contender" for it.
"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 here today.
Stating that Vedanta would bid for the government stake during public offer after the valuation and assessment is complete, Agarwal said: "We are a big contender... We will certainly bid for it."
The Vedanta group chief expressed the hope that the process would be completed in 2-3 months.
Union 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. The government had earlier sold majority stake in the erstwhile PSU to the Vedanta group.
Metal major Sesa Sterlite yesterday 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 BSE filing that the enhancement of limit was aimed at meeting funding requirements of all the group divisions such as iron ore, iron making, copper, aluminiumproduction and commercial power generation.
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Metal major Vedanta said its proposed simplification of the group structure, to be completed within the current year, will help it to capitalise on future growth opportunities.
The I-T Department had started an investigation on January 15 to establish if capital gains tax was due from Cairn Energy's transfer of shares of Indian assets that were held in a subsidiary set up in the tax haven of Jersey to newly incorporated Cairn India in 2006.<br /><br />
consultants have been appointed to explore if it would make sense to merge the two firms into Sesa Sterlite.