Hindustan Zinc share price falls 8% as govt to sell 2.5% stake via OFS

Hindustan Zinc shares dropped 8.1 per cent on Wednesday and registered an intraday low of Rs 514.1 per share on BSE. The stock declined after the government announced to sell a 2.5 per cent stake in the company through an offer for sale (OFS).

 

Around 10:11 AM, Hindustan Zinc shares were down 7.36 per cent at Rs 518.25 per share on BSE. In comparison, the BSE Sensex was up 0.77 per cent at 80,092.25. The market capitalisation of the company stood at Rs 2,19,125.04 crore. The 52-week high of the stock was at Rs 807 per share on BSE and 52-week low of the stock was at Rs 285 per share.

 

 

The floor price for the offer for sale is fixed at Rs 505 per share. The two-day OFS opens for institutional bidders today and for retail investors on Thursday. 

 

In an exchange filing, Hindustan Zinc said the Centre is proposing to sell 52.8 million shares, representing 1.25 per cent of the total paid-up capital, with an option to sell another 52.8 million shares in the event of an oversubscription.

 

“Offer for sale in Hindustan Zinc Limited opens tomorrow (Wednesday) for non-retail investors. Retail investors can bid on Thursday, November 7. Government will divest 1.25 per cent equity with an additional 1.25 per cent as greenshoe option,” Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey said in a post on X.

 

Non-retail investors who choose to carry forward their unallocated bids can participate on Thursday. The Centre holds a 29.5 per cent stake in the company at present.  

 

Hindustan Zinc Limited (HZL) is one of the prominent producers of zinc and lead in India. It is a subsidiary of Vedanta Resources, a global diversified natural resources company. Hindustan Zinc primarily focuses on the mining, smelting, and production of zinc, lead, and silver, and has been a key player in India's non-ferrous metals industry.

 

The company was established by the Government of India in 1966 as a public sector enterprise. Its primary objective was to develop the country's zinc resources and to ensure a steady supply of zinc for industrial use, particularly in galvanization and other key sectors.

 

In the past one year, Hindustan Zinc shares have gained 88.8 per cent against Sensex's rise of 22 per cent.