With a floor price of Rs 505 per share, the Center will sell up to a 2.5 percent stake in Hindustan Zinc on Wednesday through Thursday. The government may be able to disinvest Rs 5,900 crore from the transaction.
Compared to the stock’s closing price of Rs 559.45 on the BSE on Tuesday, the floor price of the HZL OFS was 9.7% lower. In the zinc-lead minor that Vedanta is promoting, the government still owns 29.54% of the business. Since it will need to find buyers for the incremental stake sales over a number of years, the government’s exit from HZL will take a while.
Almost 10% less than the current market price, the government fixed the floor price for the sale at Rs 505 per share. On Wednesday, the OFS will be available to non-retail investors, and on Thursday, November 7, retail investors will be able to place bids.
Approximately 5.28 crore shares, or 1.25% of HZL’s equity, are included in the offer. An additional 1.25% oversubscription option is available, enabling the government to generate up to Rs 5,900 crore through this sale.
When the biggest zinc-lead miner in India was sold off to Vedanta in 2002–2003, the Center’s 29.54% stake was declared a public holding.
