Shares of Vedanta's Hindustan Zinc fell by 8% on Wednesday. The government has announced the sale of 2.5% stake in this company through Offer-for-Sale (OFS). The government is preparing to sell 1.25% equity. Along with this, an option of Guin Shoe has also been kept for additional 1.25%. This means that in case OFS is oversubscribed, the government can decide to sell additional 1.25% stake. In this way, a total of 2.5% stake is planned to be sold.

The floor price for this OFS has been fixed at ₹505 per share, which is at a 10% discount from Tuesday's closing price. Based on this floor price, the government will get ₹5,300 crore if the OFS is fully subscribed. This OFS opened for non-retail investors on Wednesday and will open for retail investors on Thursday (7 November).

Can multiple bids be placed simultaneously? Yes, as a retail investor, you can place multiple bids from your demat account. The bid amount can also be changed during trading hours. However, it is not necessary that the number of shares bid for is the same as the bid. For example, suppose you have bid for 100 shares and the fixed amount for this has been blocked. But, it is possible that only 50 shares are allotted to you. The remaining amount will be refunded. This process is almost like an IPO. Let us tell you that Hindustan Zinc is now a company of Vedanta Group. Vedanta Group has 63.42% stake in this company. Whereas, till the September quarter, the Central Government has 29.5% stake in this company. In August, Hindustan Zinc's promoter Vedanta Group reduced its stake in the company through OFS. During a conversation with CNBC-TV18 in October, Hindustan Zinc CMD Arun Mishra had said that OFS is the government's view and the government can announce it soon. Hindustan Zinc's stock has slipped by 40% from the upper levels of ₹ 807 per share. However, this year so far this stock has seen a gain of 62%.