2024-03-22 18:05:00
NEW DELHI: Central Government has rejected the plan to demerge the business of ‘Hindustan Zinc’.
Vedanta Group’s Hindustan Zinc Company plans to spin off its zinc and silver businesses into a separate entity. The scheme is proposed to increase the market value. But this project has been rejected by the Union Ministry of Mines. The central government is the largest minority shareholder of Hindustan Zinc Company. It holds 29.54 percent shares of the company. It is said that the government was not consulted before deciding to separate the businesses.
When reporters asked Union Mines Secretary VL Kantha Rao what was the reason for the government’s rejection, he said, “We are not satisfied with any of the reports placed before us.” Subsequently, the share price of Hindustan Zinc Company rose by 0.87 percent to trade at Rs 296.55 during the trading hours of the Mumbai Stock Exchange yesterday. Shares of Vedanta were trading at Rs 273.75, up 0.16 per cent.
Earlier, Vedanta Group had planned to sell two of its companies to Hindustan Zinc. But when the government objected to the plan, the company abandoned it.
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