Hindustan Zinc gains as government mulls changes in Metal Corporation Act to push stake sale

NEW DELHI: Shares of Hindustan Zinc Ltd (HZL) gained about 4 per cent in trade on Wednesday on reports the government is mulling amendments to the Metal Corporation Nationalisation and Miscellaneous Provisions Act, 1976 in order to push the sale of its remaining stakes in the company.

The stock hit a day's high of Rs 135.55 on the BSE.

A senior government official told ET that an opinion has already been sought from the attorney general on this matter.

"There is a view that any movement on stake sale in Hindustan Zinc should be pursued only after amending the Act in order to avoid any further legal hassles," said the official, adding that the proposal can be brought up in the winter session of Parliament.

HZL was incorporated in 1966 as a state-run firm after the takeover of erstwhile Metal Corporation of India. As per the 1976 Act, any change in the nature and character of the company is not allowed, except with Parliament's approval. During 2001-03, the government sold majority stakes in HZL to the Vedanta Group. At present, London-listed Vedanta holds 64.92 per cent in HZL.

Shares of Vedanta also gained 4.65 per cent on the BSE.