Vedanta and Hindustan Zinc on a roller coaster ride

The shares of both the companies have surged over 3 per cent. Both represent Metals and Mining segment. The shares of Vedanta on Aug 5, as at 10.51 am are trading at Rs 166.80, up by 3.09 percent. Hindustan Zinc has also surged by 4.97 per cent and is currently trading at Rs 218.60.

According to some media houses, Vedanta has stepped up efforts to buy out government's stake in Hindustan Zinc and is likely to increase the offer. The company may have appointed advisors to help in revising prices and is awaiting a nod from Vedanta Plc before revising the offer. Vedanta holds 64.92 percent stake; and government 29.54 percent in Hindustan Zinc. Hindustan Zinc in the last 1 month has given a return of 85 per cent and Vedanta has fetched 22 per cent.

Shares of both the companies  have largely  rallied on the news. Vedanta Resources PLC, is a globally diversified metals and mining company headquartered in London, United Kingdom. It is the largest mining and non-ferrous metals company in India and has mining operations in Australia and Zambia and oil and gas operations in three countries.On the other hand, Hindustan Zinc is a subsidiary of Vedanta Resources, and is the world's second largest zinc producer.