The Centre will sell up to 2.5% stake in Hindustan Zinc at a floor price of Rs 505 per share on Wednesday-Thursday. The sale could fetch the government Rs 5,900 crore as disinvestment revenue.
The floor price for the HZL OFS was at a discount of 9.7% to the closing price of the stock at Rs 559.45 on the BSE on Tuesday.
“Offer for Sale in Hindustan Zinc Limited (HZL) opens tomorrow for non-retail investors. Retail investors can bid on Thursday, 7th November. Government will divest 1.25% equity with an additional 1.25% as green shoe option,” the department of investment and public asset management secretary Tuhin Kanta Pandey tweeted.
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The government’s residual stake is 29.54% in the zinc-lead minor promoted by Vedanta. The government’s exit from HZL will be a long haul as it has to find buyers for gradual stake sales in several years.
After India’s largest zinc-lead miner, was privatised in 2002-2003 in favour of Vedanta, the Centre’s 29.54% was categorised as the public holding. After Vedanta lost the case to acquire the residual stake from the government in 2021, the Supreme Court permitted the government to exit by offloading the stake through public offers.
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