Vedanta pledges 5.8% stake in Hindustan Zinc for Rs 8000-crore term loan

Mining sector giant Vedanta on Wednesday, June 8 said it has pledged 5.8 per cent stake in its subsidiary Hindustan Zinc Limited (HZL) to raise a term loan of Rs 8,000 crore. Let us tell you that even about 10 months ago, Vedanta had pledged 14.82 per cent stake in Hindustan Zinc for a term loan of Rs 10,000 crore.

Government wants to sell the entire stake

The Government of India has also recently approved the sale of its remaining 29.58 percent stake in Hindustan Zinc. The government expects it to get around Rs 38,000 crore from this sale. The move will help the government achieve its disinvestment target in the current financial year. The government has set a target of raising Rs 65,000 crore in the current financial year through disinvestment and strategic sale of PSUs.

However, Vedanta Group Chairman Anil Agarwal says that his company can buy only 5 per cent more from the government’s remaining stake in Hindustan Zinc. “We are not a buyer, this stake will be put up for sale in the market and the market will buy it. We cannot buy more than 5 per cent of the remaining stake in Hindustan Zinc,” Agarwal said.

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