Hindustan Zinc share price rises nearly 4% as SC allows government to sell stake

Stocks

The share touched a 52-week high of Rs 407.90 and a 52-week low of Rs 218.25 on October 18, 2021 and November 25, 2020, respectively.

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Hindustan Zinc share price rose nearly 4 percent intraday to Rs 344.90 on November 18 after the Supreme Court allowed the government to sell stake in the company.

The Supreme Court (SC) has cleared the divestment in Hindustan Zinc Limited (HZL), CNBC-TV18 reported. HZL has ceased to be a government company as the government, an ordinary shareholder, has a 29.5 percent residuary stake, SC added.

The court added that the government was entitled to make a decision on divestment shareholding as long as the process is transparent and realizes the best prices.

Centre sought closure of preliminary inquiry into 2002 Hind Zinc divestment. However, the court held that there existed a prima facie case of violation of divestment norms in the 2002 government stake sale and disallowed the closure. The court directed a regular CBI probe into it now.

In 2014, the Central Public Sector Enterprises (CPSEs) moved an application in the court alleging undervaluation of shares during 2002 divestment.

Following the allegations, the apex court stayed any further divestment of government stake in the company in 2016.

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In the separate filing, the company informed that it has formed a wholly owned subsidiary in the name and style of Hindustan Zinc Alloys on November 17, 2021 in the state of Rajasthan wide certificate of incorporation granted by Central Registration Centre, Manesar.

At 11:26 hrs Hindustan Zinc was quoting at Rs 336.65, up Rs 4.00, or 1.20 percent.

The share touched a 52-week high of Rs 407.90 and a 52-week low of Rs 218.25 on 18 October, 2021 and 25 November, 2020, respectively.

Currently, it is trading 17.47 percent below its 52-week high and 54.25 percent above its 52-week low.