Hind Zinc top loser on BSE

Hindustan Zinc is the big loser on the BSE, down currently almost 3.5% at Rs.129.75, its current intra day low.

The stock is down on news that CBI has registered a preliminary enquiry against Vedanta Group chairman Anil Agarwal in connection with the alleged irregularities in the disinvestment of Hindustan Zinc  during the NDA regime in 2002. CBI alleges that the loss caused to the exchequer due to the alleged irregularities runs into hundreds of crores of rupees.

Sterlite Industries, had picked up a stake in HZL at an undervalued price resulting in the estimated loss to the exchequer. This year, the Sterlite Inds was merged with another group Sesa Goa in August and renamed as Sesa Sterlite.

Vedanta Resources group has been trying to buy Govt’s stake in Hind Zinc, which stands at 29.5%. It has got the shareholder’s approval to spend around $3.48 billion to buy the stake. Sesa Sterlite owns 64.9% in Hind Zinc.