Vedanta can buy 5% more in HZL: Anil Agarwal

Billionaire Anil Agarwal said Vedanta will look into buying an incremental 5% stake in Hindustan Zinc from the government, but the rest of the sovereign stake will be sold in the open market.

The chairman of Vedanta was reacting to reports the cabinet had approved divestment of the government's residual 29.5% stake in the company.

Agarwal, speaking to ET from Davos, said by law Vedanta can buy only 5% incremental stake in the company. However, there is a precedent of the government taking market regulator Sebi's approval to sell more than the threshold stake to the promoters, he said, and if such a window is provided to Vedanta, it will consider the option.

The deal would have to be approved by the Vedanta board first as it will be a major investment.

"The whole idea was that the government cannot remain in business, so that the shareholders can take their own decisions," Agarwal told ET. "Every time for doing anything, any appointment or expansion or anything else, you have to go to the government. That was not good for the government, not good for us."