Up 64% in 1 year, centre to pare stake in this metal company in small tranches soon

Shares of the metal company- Hindustan Zinc are in focus in Friday's session as sources suggest that the government will work on its plan of reducing its stake in the Anil Agarwal-led company. In the previous day's trade, the stock ended higher by 1.52 per cent at Rs 518.65 per share on the BSE.

As per Zee Business exclusive report, the centre will soon start offloading its stake in Hindustan Zinc in small tranches.

The stake sale in the entity shall come after the parent company Vedanta has also pared stake via the offer for sale (OFS) route.

After the promoter's stake sale in Hindustan Zinc, there is seen some positive momentum in the stock as the likely risk of delisting of the stock is now behind us. The recent stake sale by Vedanta has offered cues on the likely appetite for the stock in the market and accordingly the centre has charted its plan of divestment in the stock.

According to Zee Business research inputs, the centre is of the belief that it will be difficult to pare the entire 29.5 per cent stake in the company at one go. The research team also added that after the promoter company Vedanta has pared its stake in Hindustan Zinc, investors' concern concerning debt recovery by the entity through frequent announcement of dividends has to some extent subsided.