Shares of Vedanta company Hindustan Zinc Ltd fell as much as 8% on November 6, after the government announced plans to sell up to 2.5% of its stake through Offer for Sale (OFS).
The initial disinvestment of 1.25% is part of the OFS, and an additional 1.25% can be sold based on demand.
Shares of Vedanta company Hindustan Zinc Limited fell by 8% after the government announced the sale.
The OFS has set a floor price of ₹505 per share, 10% lower than the closing price a day earlier. If all the shares are subscribed, the potential income could reach ₹5,300 crore.
“Offer for sale in Hindustan Zinc Ltd opens for non-retail investors tomorrow (Wednesday),” according to a post on X by Tuhin Kanta Pandey, Secretary, Department of Investment and Public Asset Management (DIPAM). Retail investors can place bids on Thursday, November 7. The government will disinvest 1.25 per cent of equity with an additional 1.25 per cent as greenshoe option.
follow normal bidding processThe OFS opened for retail investors on Thursday after opening for non-retail investors on Wednesday, November 6.
On November 6, shares of Hindustan Zinc Limited closed at ₹514.85, down 8.01% from the previous close.
Hindustan Zinc shares increased by 61%
Hindustan Zinc Ltd. stock is up 61% since the beginning of 2024 and 73% in the past year.
Investors are allowed to place multiple bids in the OFS, as long as they have the entire bid amount in their demat account, and the bids can be revised during the trading day.
Like the IPO process, the final allotment is announced at the end of the day, and any excess money is returned.
As of the September quarter, the government held 29.5% stake in Hindustan Zinc, while Vedanta Group held 63.42%.
This OFS comes after Vedanta Group sold stake in August. CMD Arun Mishra had said in October that the government intended to move forward with the OFS soon.
