Hind Zinc, the second largest Zinc & Lead producer in the world, is seen Vedanta Ltd holding 64.92% stake in the company, as Promoter. Strangely, Govt is holding 29.54% stake as non promoter, while 3.67% is held by the institutional investors,with remaining 1.87% being held by 1.53 lakh shareholders. In last 6 months, 15 individuals have raised their stake to 33.39 lakh shares, as at 30-9-20, which were 8 HNIs holding 13.73 lakh shares as at 31-3-20.
Between 5th to 8th January, share price rose from Rs. 244 to Rs. 304, on average delivery volume of 15 lakh shares seen on each of these days, against average of 3 lakh shares seen prior to that for 1 month. Informed circles are saying that Govt. has stitched the plans to divest 125 cr shares, being 29.59% to Vedanta Group, at Rs. 320 per share, for which permission of Apex Court will also be sought. This will give Rs. 40,000 crores to Govt, which will help Govt to meet its divestment target, as also, to curtail Fiscal Deficit.
Merger in Vedanta Ltd may be followed thereafter, as Vedanta will eventually will hold 95% of Hind Zinc. Share price fell to low of Rs. 270 last week, but recovered to Rs. 300 yesterday, hence one can still rely on figure of 320? Need to keep a close watch on the development, as there can not be smoke without fire.
This governmemt selling will be seen extremely positive for Vedanta Ltd as well, as "Holding Company Discount", now seen of over 40% will go away.