Vedanta's recent statements, actions on Hindustan Zinc irks Government: Awaaz Exclusive

In an interview to CNBC-TV18 on March 3, Vedanta Resources Chairman Anil Agarwal spoke about the government's plan to offload stake in Hindustan Zinc via an Offer for Sale. "Government has agreed that they will sell 100 percent share 20 years back. So how much will you hold our leg and not allow us to run? They have to take a decision to disinvest this 29 percent. The company has to be run by the board and not by the government," he had said.

In response, the source said that the government has not been able to sell its stake due to various litigations and the Supreme Court. The source further added that even after all litigation processes end, the government will not sell its holdings in one stretch.

The government plans on selling its stake in Hindustan Zinc in multiple tranches, keeping in mind the current market conditions. As per SEBI regulations, Vedanta cannot buy more than a third of the shares of offer in the Hindustan Zinc OFS.

There is no question of selling the government stake in Hindustan Zinc directly to Vedanta, the source said.

"I have only one goal, and that is to double the size of Hindustan Zinc. If the government wants to come out of this, then they have to be bold to take a decision. They have announced that they are going to sell their share in the market in March, so I am looking forward to that. If the deal doesn’t happen Hindustan Zinc will start going down," Agarwal mentioned during the interview.

Shares of Vedanta are trading 0.9 percent lower at Rs 282.90, while those of Hindustan Zinc are trading 1.2 percent lower at Rs 307.95.