Vedanta Group seeks to bid for government stake in Hindustan Copper
After registering its interest in acquiring Shipping Corporation of India, Vedanta Group is considering government participation in Hindustan Copper Limited.
The government has not yet announced the timetable for the sale of the stakes, but the public sector company is one of the companies identified for divestment as part of the plan to raise 1.75 lakh crore from the sale of the shares. participations in public sector companies and financial institutions, including 2 bank PSUs and an insurance company, in the current financial year.
The government has reduced its stake in Hindustan Copper through the open market over the past two years.
Sale of participation
Recently, the government sold 10 percent of the capital of Hindustan Copper through an offer to sell at 116 per share. Life Insurance Corporation of India had acquired the bulk of the shares sold by the Center as part of the offer to sell, bringing its stake in the company to 14.98 percent. The government now owns about 62 percent of the company’s capital.
In 2019, Vedanta President Anil Agarwal urged Prime Minister Narendra Modi to divest a stake in at least five state-owned companies, including Hindustan Copper. Vedanta previously acquired the government’s 64.9 percent stake in Hindustan Zinc (HZL) in 2002-2003.
Activity area had recently reported that Agarwal was also in the race to acquire the Shipping Corporation of India Ltd (SCI) from the government.
The billionaire founder of Vedanta Resources is said to have performed due diligence on India’s largest shipping company, as well as three other bidding groups.