The government has announced its plan to sell its stake in Hindustan Zinc. The government will sell its 2.5 percent stake in the company through an offer for sale. Giving information about this, the DIPAM Secretary said that the OFS will open on November 6 and the floor price of the offer has been kept at Rs 505 per share. In Tuesday's trading, the stock closed at Rs 559 with a decline of about 3 percent. That is, the floor price is at a discount of 9.6 percent compared to today's closing price.

 

DIPAM Secretary has informed that the government will sell 1.25 percent equity and provision has also been made for selling 1.25 percent additional stake under the green shoe option. As per the data till September 2024, the Center has 29.54 percent stake in Hindustan Zinc. At the same time, Vedanta has a 63.42 percent stake in the company. According to the information given, the issue will open for non-retail investors on November 6, while retail investors can bid in the issue on November 7. 10 percent share in the issue has been reserved for retail investors. In the year 2022, the Cabinet had approved the sale of the entire stake of the government in the company.

Hindustan Zinc's stock has registered a gain of 76 percent so far this year. Last month on October 18, the company released its quarterly results, according to which the company's second quarter profit has increased by 35 percent to Rs 2327 crore. Vedanta had launched OFS in August this year to sell 3.17 percent stake in the company.