An offer-for-sale announcement for Hindustan Zinc is likely from the government within three months, said chief executive officer Arun Misra.
“An OFS was always on the cards, and it was to be done last year itself,” Misra said in an exclusive interaction with ET. “The government is of the opinion that restructuring is not to be done now, and our opinion is that, in that case, the OFS should be done now,” he said.
Hindustan Zinc had proposed a corporate restructuring in September last year, where it looked to create three different entities for zinc and lead, silver and its recycling business.
While the country’s largest producer of zinc is majorly owned by Vedanta with a 64.92% stake, the government owns a 29.54% stake in the company. This means that any restructuring would require government approval.
“We strongly believe that there is no linkage between the OFS and restructuring and we will continue to engage with the government on this subject,” Misra said. “I would expect an OFS before the next board meeting. If that does not happen, we will of course try to get the restructuring done,” he said.
Shares of Hindustan Zinc have jumped 36% so far in April, and also tested their all-time high earlier this month.
An OFS allows existing shareholders to sell their stake in the secondary market, typically at a discount, and those looking to divest stake try to do so when prices are robust. The number of tranches in which the government will sell its stake is yet to be decided, Misra said.
