Hindustan Zinc Sets Date and Floor Price for Upcoming Offer for Sale

Ravi Singh

The floor price for Hindustan Zinc’s offer for sale is set at a 16% discount compared to Wednesday’s closing price of ₹576.

Hindustan Zinc Limited (HZL) announced on Wednesday that its offer for sale will run from August 16 to August 19, with a floor price of ₹486 per share. On the same day, its parent company, Vedanta, revised its stake sale in HZL to 3.31% through the OFS route, an increase from the initially planned 2.60%.

The company stated in an exchange filing on Wednesday, “This supersedes the earlier approval from the Committee of Directors and the notification filed by the Company on August 13, 2024.”

Hindustan Zinc OFS Details:

Only non-retail investors will be permitted to place bids on August 16, 2024, the company added.

The metal and mining major will now offer 14 crore shares of HZL, up from the previously announced 11 crore shares, as disclosed on Tuesday.

The floor price for the Hindustan Zinc offer for sale is set at a 16% discount to Wednesday’s closing price of ₹576. The stock fell by 0.7% on Wednesday compared to Tuesday’s close.

Vedanta’s stake sale will occur in two phases. On August 16, it will sell over 5.14 crore equity shares, or 1.22% of HZL’s total equity, exclusively to non-retail investors. On August 19, the offer will be open to both retail investors and non-retail investors wishing to carry forward their unallocated bids. Additionally, the OFS includes an option to sell an extra 8.23 crore shares, representing 1.95% of equity, in the event of oversubscription.

Vedanta plans to spin off its aluminium, oil and gas, power, base metals, and iron and steel businesses into separate publicly traded companies. This strategy aims to reduce refinancing risks and lessen reliance on dividends from Vedanta Resources Ltd (VRL).