Sterlite Industries - Government stake sale to sort out cash fungibility - Kotak

According to unauthenticated media reports, decks are cleared for sale of Government's residual stake in Hindustan Zinc (29.5%) and Balco (49%). We believe the exit of the Government from HZ and its probable integration with Sesa Sterlite will resolve liquidity issues at the standalone entity. However, there are multiple loose ends in the deal execution that may scupper or delay complete control of HZ. The conclusion of Sesa Sterlite merger is a positive and creates a well-diversified entity – improved liquidity will aid growth. ADD.

Source : Equity Bulls

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