Government aims to divest its stake in Hindustan Zinc - Angel Broking

Media reports suggest that government has cleared the legal hurdles to sell its 30% stake in Hindustan Zinc via an OFS. We believe 30% stake sale by the government will make the cash in Hindustan Zinc fungible for the parent Sterlite Industries - who can then use Hindustan Zinc's cash to repay its own debt. While the stake sale is positive for Sterlite Industries and Sesa Goa, we believe Hindustan Zinc is likely to benefit the most in case the sale goes through.

We maintain our Buy rating on Hindustan Zinc with a target price of Rs. 143.

Source : Equity Bulls

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