The government plans to hold roadshows in December, if market conditions permit, to sell its rump stake in Hindustan Zinc in tranches. The Centre plans to monetise a lucrative asset that was disinvested during Vajpayee’s regime in 2003.

The Centre’s 29.5 per cent is valued at over Rs 30,000 crore at current market prices, which could meet a significant portion of the FY23 disinvestment target of Rs 65,000 crore. It is unlikely to sell its stake in one go. However, the quantum of stake that would be put out for sale would depend on the investors’ interest, officials said.

The Department of Investment and Public Asset Management (DIPAM) has appointed five bankers — ICICI Securities, Axis Capital, Citi Group, HDFC Bank and IIFL Securities — to advise on the timing and management of the HZL stake sale.

Officials said the proposal is to disinvest the entire residual shareholding through Sebi-approved methods in the open market in tranches.

They said government officials and company officials have met recently and were accordingly working on businessplans, which will be presented before potential investors during roadshows.

In 2002, Vedanta (earlier known as Sesa Sterlite) had bought a 26 per cent stake in HCL, India’s largest zinc/lead mine, for Rs 445 crore. It exercised the first call option in2003 and acquired an 18.9 percent additional stake in HZL. Vedanta later acquired another 20 per cent stake in the company through an open offer, increasing its shareholding to64.92 per cent.

HZL was a Central Public Sector Enterprise (CPSE)under the administrative control of the mines ministry and was privatised in 2002. Vedanta Ltd holds a 64.92 per cent in HCL, while the government holds 29.53 per cent. Only a5.5 per cent stake is with the public.

The Union Cabinet in May approved the sale of 124.9crore shares, or 29.53 per cent, stake the government holds in zinc producer HZL, which was sold to Sterlite in 2002.