Hindustan Zinc ends lower as OFS concludes

Hindustan Zinc fell 1.07% to end at Rs 507.65 after the offer for sale (OFS) announced by the company's promoters concluded on Thursday, 07 November 2024.

Through the OFS, the Government of India had proposed to sell 5,28,16,488 shares, representing a 1.25% stake, with an option to sell an additional 1.25% stake or 5,28,16,487 equity shares in case of oversubscription. The floor price for the offer had been set at Rs 505 apiece.

With the promoter exercising the oversubscription option to the extent of up to 2,15,77,052 equity shares (representing 0.51% stake), the total OFS size (base size + green shoe) aggregated to 7,43,93,540 shares, representing 1.76% of outstanding equity shares of the company, the value of which (at floor price) aggregates to Rs 3,756.87 crore.

The Government of India held 63.42% stake in Hindustan Zinc as of 30 September 2024.

The OFS opened on 06 November 2024, which is the T-day, where only non-retail investors could bid for the shares. On 07 November 2024, which was the T+1 day, the OFS was accessible for retail investors and those non-retail investors, who choose to carry forward their un-allotted bids from T day.

On Day 1 (T-day), as of 15:30 IST, the OFS received subscription for 6,69,54,186 shares. It was subscribed 140.85% on the base non-retail offer size of 4,75,34,839 shares.

On Day 2 (T-day), as of 15:30 IST, the OFS received subscription for 13,83,796 shares. It was subscribed 26.20% on the base retail offer size of 52,81,649 shares.

Hindustan Zinc, a Vedanta Group company, is an integrated producer of zinc, lead and silver.

The company had reported 34.58% jump in consolidated net profit to Rs 2,327 crore in Q2 FY25 as against Rs 1,729 crore posted in Q2 FY24. Total revenue from operations during the quarter was Rs 8,252 crore, up 22% YoY.

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