New Delhi: The Centre has sought bids from merchant bankers and legal advisors for selling a residual government stake of 29.53 percent in Hindustan Zinc Ltd (HZL).

"The Government of India intends to disinvest its entire residual shareholding of 29.535 percent paid up equity capital of HZL through SEBI approved methods in the open market in tranches," the Department of Investment and Public Asset Management (DIPAM) said.

The last date for putting in bids by merchant bankers is July 28, while for legal advisors it is July 29.

HZL was a CPSE under the administrative control of the mines ministry and was privatised in 2002.

Currently, Vedanta Ltd holds 64.92 percent stake in HZL, while the government holds 29.53 percent. Only 5.5 percent stake is with the public.

The Union Cabinet had in May approved the sale of 124.9 crore shares or 29.53 percent stake the government holds in zinc producer HZL, which was sold to mining mogul Anil Agarwal's Sterlite Industries in 2002.

The government disinvested 26 percent of its equity holding in HZL along with transfer of control to strategic partner, namely M/s Sterlite Opportunities and Ventures Ltd (SOVL), on March 28, 2002.

Subsequently, as per provisions of share holding agreement, the strategic partner exercised its call option and government transferred 18.92 percent to SOVL, which is part of Agarwal's Vedanta group.

Shares of HZL closed at Rs 262.95, up 2.51 percent over previous close on the BSE.

At the current market price, sale of 124.9 crore shares would fetch about Rs 33,000 crore to the exchequer.

(With PTI inputs)

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