Hindustan Zinc shares plunges by 7% as government set to sell up to 10.56 crore shares
The government will offer up to 2.5% of its stake in Hindustan Zinc at a floor price of Rs 505 per share.
Hindustan Zinc shares plunges by 7 as government set to sell up to 10.56 crore shares
Hindustan Zinc’s stock fell by 7.62% to Rs 516.80 following the announcement by the President of India regarding the government's plan to sell a 1.25% stake in the company through an offer for sale (OFS). The Government of India intends to sell 5,28,16,488 shares, which represents a 1.25% stake, with the option to sell an additional 1.25% stake (5,28,16,487 shares) in the event of oversubscription.
The government will offer up to 2.5% of its stake in Hindustan Zinc at a floor price of Rs 505 per share. This stake sale is expected to raise over Rs 5,000 crore at the floor price. The two-day OFS will open for institutional bidders on Wednesday and for retail investors on Thursday.
"Offer for sale in Hindustan Zinc Limited (HZL) opens tomorrow (Wednesday) for non-retail investors. Retail investors can bid on Thursday, 7th November. The government will divest 1.25% equity with an additional 1.25% as greenshoe option," Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey said in a post on X.
Read Also : HCL Foundation and UP Government sign MoU to enhance veterinary services in HardoiThe floor price of the offer has been set at Rs 505 apiece, a 9.73% discount to the stock's closing price of Rs 559.45 recorded on Tuesday, 05 November 2024. The government owned a 29.54 percent stake in Hind Zinc while Vedanta holds a 63.42 percent stake.
A minimum of 25% of the offer has been reserved for mutual funds and insurance companies, while 10% for retail investors. The OFS opened on 06 November 2024, which is the T-day, where only non-retail investors can bid for the shares. On 07 November 2024, which is the T+1 day, the OFS will be accessible for retail investors and those non-retail investors, who choose to carry forward their unallotted bids from T day. On Day 1 (T-day), as of 11:20 IST, the OFS received a subscription for 4,42,887 shares. It was subscribed 0.84% on the base non-retail offer size of 5,28,16,488 shares.
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