According to persons familiar with the issue, the government of India will likely begin informal negotiations with Vedanta about Balco's future stock market listing before making a solid recommendation to the aluminium company's board.
The government of India still holds a 49 per cent stake in Balco after divesting a 51 per cent stake in 2001 to Sterlite Industries, a subsidiary of Vedanta.
According to the people quoted, the government of India wants Vedanta to list Balco so that it can sell a portion of its stake through an IPO before quitting the business later.
However, it was reported in March 2023 that the mining ministry sought further advice from Dipam on the roadmap for the disinvestment of Balco, which has been in the works for some years. Upon finalizing this, the process of appointing transaction advisers and legal advisers may begin for the share sale plan of Balco next year.
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