Preparation to increase the market cap of Hindustan Zinc, brainstorming is going on in the company on this formula.
Hindustan Zinc Limited, a subsidiary of Vedanta Group, has held fresh talks with the government on the proposal to split the company into two parts. Earlier, there was a proposal to divide the company into 3 parts. Hindustan Zinc CEO Arun Mishra said the company’s restructuring plan to create a separate unit was put on hold as the government opposed the bid. Let us tell you that the Central Government has 29.54 percent stake in this giant mining company.
Ministry’s approval required for any restructuring of business operations
CEO Arun Mishra said that the talks with the government regarding the divestment of Hindustan Zinc were very good. Arun Mishra said, “So now the government will come back to the discussion of partition.” Yes, we have discussed again. Now there will be two parts instead of three. , The Mines Ministry had earlier written a letter to the company saying that any restructuring of business operations would require the ministry’s approval.
The CEO met the Mines Secretary
The CEO of Hindustan Zinc said that he had recently met the Mines Secretary and both the government and Hindustan Zinc are discussing this issue which is a “big” issue. Arun Mishra said, “This is a big issue. This requires restructuring of assets including mines and smelters. He said that Hindustan Zinc wants to make both the companies asset based. In such a situation, assets mean that mines and smelter plants will have to be separated. “
Split was announced last year to increase the market cap of the company.
Arun Mishra said, “Even if we separate, there is no mine that produces only silver. There are no mines which produce only zinc and lead. Therefore there will be talks between the two. So these are all complex issues which are under discussion. Let us tell you that Hindustan Zinc had announced last year a plan to divide its business into different units to increase its market cap.
