Hindustan Zinc announces date, floor price for offer for sale; check details here

Hindustan Zinc Limited (HZL) announced on Wednesday that its offer for sale will start on August 16 and end on August 19, with a floor price set at ₹486 per share.

Earlier on the same day, its parent company, Vedanta, updated its stake sale in HZL to 3.31 per cent through the OFS route, up from the previously planned 2.60 per cent.

"This is in supersession of the earlier approval of the Committee of Directors and the intimation filed by the Company dated August 13, 2024," the company said in an exchange filing on Wednesday.

Hindustan Zinc OFS details

Only non-retail investors shall be allowed to place their bids on T day, i.e., August 16, 2024, the company added.

The metal and mining major will now offer 14 crore shares of HZL instead of 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 per cent discount to Wednesday's closing price of ₹576. The stock closed down 0.7 per cent on Wednesday compared to Tuesday's closing price.

Vedanta's stake sale will be conducted in two phases. On August 16, it will sell over 5.14 crore equity shares, representing 1.22 per cent of HZL’s total equity, exclusively to non-retail investors. On August 19, the issue will be open to retail investors and non-retail investors who wish to carry forward their unallocated bids. Additionally, the OFS includes an option to sell an extra 8.23 crore shares, representing 1.95 per cent equity, in case of oversubscription.

At the close of the June quarter, Vedanta held a 64.92 per cent stake in HZL, with the government owning 29.54 per cent.

Vedanta intends to spin off its aluminium, oil and gas, power, base metals, and iron and steel businesses into separate publicly traded companies. This strategy is designed to mitigate refinancing risks and decrease dependence on dividends from Vedanta Resources Ltd (VRL).