The Center has shortlisted six investment bankers to help the government offload its residual 29.5% stake in Hindustan Zinc in installments.

The merchant banks, which include ICICI Securities, SBI Capital Markets, HDFC Bank, IIFL Securities, Axis Capital and Citigroup Global Markets, will make presentations to an interdepartmental group on August 12. After the presentations, the selected investment bank will be informed.

The selected investment bank is expected to assist the government on the timing and terms of the divestiture, conduct market research, organize national and international roadshows to generate interest from potential investors and obtain regulatory approvals, among others. They will have to prepare a list of national and international investors to be contacted by them within seven days.

The Center is seeking to sell its interest through the offer to sell mechanism. The government’s stake, according to the closing share price on Wednesday, was over Rs 34,000 crore.

The selected investment banker will also need to ensure that appropriate safeguards are in place to protect government interests. The offer will have to be structured taking into account the provisions of the shareholders’ pact between the State and the Vedanta group, signed in 2002, which had led to prolonged litigation.

Dear reader,

Business Standard has always endeavored to provide up-to-date information and commentary on developments that matter to you and that have wider political and economic implications for the country and the world. Your constant encouragement and feedback on how to improve our offering has only strengthened our resolve and commitment to these ideals. Even in these challenging times stemming from Covid-19, we remain committed to keeping you informed and updated with credible news, authoritative opinions and incisive commentary on relevant topical issues.
However, we have a request.

As we battle the economic impact of the pandemic, we need your support even more so that we can continue to bring you more great content. Our subscription model has received an encouraging response from many of you who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of bringing you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practice the journalism we are committed to.

Support quality journalism and subscribe to Business Standard.

digital editor