The government of India is discussing selling stake in
Hindustan Zinc Limited (HZL) in the current financial year from its shareholding of 29.5%. The government has appointed ICICI Securities, Axis
Capital, HDFC Bank, Citigroup, and IIFL Securities as merchant bankers for the
issue, according to a CNBC-TV18 report.

As many as 6 merchant bankers had made a presentation
before the government officials on August 12, the report added. In early July,
the Department of Investment and Public Asset Management (DIPAM) invited bids
from merchant bankers for managing HZL’s residual stake and set July 28 as the
deadline for putting bids.

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Hindustan Zinc was a central public sector enterprise under
the administrative control of the Mines Ministry and was privatized in 2002.
Currently, Vedanta Limited owns 64.92% of the company, the government owns
29.53% and a 5.5% stake is with the public.

The government is aiming to raise Rs 65,000 crore through
the CPSE disinvestment in the ongoing financial year. So far this year, it has
raised Rs 24,544 crore. Central Public Sector Enterprises (CPSEs) are those
companies in which the direct holding of the Central Government or other CPSEs
is 51% or more.

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Hindustan Zinc had reported a 55.9% year-on-year growth in
net profit to Rs 3,092 crore for the first quarter of the financial year
2022-23. The company had posted a net profit of Rs 1,983 crore in the
corresponding quarter of the previous financial year. Sequentially, net profit
grew 5.6%, driven by higher LME prices while being partially offset by the
rising input commodity prices.

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The revenue from operations during the quarter ended June
30, 2022, stood at Rs 9,387 crore, an increase of 43.7% year-on-year, led by
higher zinc volumes and zinc LME prices as well as favourable exchange rates
while partially offset by lower silver prices.

Sequentially, revenue increased 6.7%, primarily due to
higher zinc LME, gain from strategic hedging, and higher lead and silver
volumes which were partly offset by lower zinc volumes and lower lead and
silver prices.

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Earnings before interest, taxes, depreciation, and
amortization (EBITDA) during the quarter came at Rs 5,278 crore, up 48.3%

At 11:22 am IST, Hindustan Zinc stock was trading at 0.80
points or 0.28% higher at Rs 290.35 on BSE.