ICICI Securities, Axis Capital and Citigroup Global Markets are among the five investment bankers selected to manage the sale of the government's 29.53 per cent residual stake in Hindustan Zinc Ltd, an official said on Tuesday.

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Also, HDFC Bank and IIFL Securities will act as investment bankers and work with the government and handle the share sale offers, the official said.

As many as 6 merchant bankers had made a presentation before the government officials on August 12.

The official told PTI that the five bankers selected are ICICI Securities, Axis Capital, Citigroup Global Markets, HDFC Bank and IIFL Securities.

The Department of Investment and Public Asset Management (DIPAM) had in early July invited bids from merchant bankers for managing Hindustan Zinc Ltd (HZL) residual stake and set July 28 as the deadline for putting bids.

The selected merchant bankers will assist the government on the timing of the divestment, get investor feedback, and hold investor road shows, besides seeking regulatory approvals.

HZL was a CPSE under the administrative control of the Mines Ministry and was privatised in 2002.

Currently, Vedanta Ltd holds 64.92 per cent in HZL, while the government holds 29.53 per cent. Only a 5.5 per cent stake is with the public.

The Union Cabinet had in May approved the sale of 124.9 crore shares or 29.53 per cent stake the government holds in zinc producer HZL, which was sold to mining mogul Anil Agarwal's Sterlite Industries in 2002.

The government disinvested 26 per cent of its equity holding in HZL along with a transfer of control to Sterlite Opportunities and Ventures Ltd (SOVL) on March 28, 2002.

Subsequently, as per provisions of the shareholding agreement, the strategic partner exercised its call option, and the government transferred 18.92 pet cent to SOVL, which is part of Agarwal's Vedanta group.

Shares of HZL rose 6.85 per cent to close at Rs 292.50 on the BSE.

At the current market price, the sale of 124.9 crore shares would fetch about Rs 36,000 crore to the exchequer.

The government has budgeted to raise Rs 65,000 crore through CPSE disinvestment in the current fiscal. So far this fiscal, it has realised Rs 24,544 crore.