10 KEY REASONS CONTRIBUTING TO HINDUSTAN ZINC'S 8% DROP
Published By Moushumi Mahanta | 16 Aug, 2024
Hindustan Zinc's shares fell nearly 8% on August 16, 2024.
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Vedanta, the promoter, announced a larger Offer for Sale (OFS) than initially planned.
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The OFS, opening on August 16 and closing on August 19, is priced at <span class='webrupee'>₹</span>486 per share, a 15% discount to the previous closing price.
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Vedanta increased its stake sale to 13.3 crore shares (3.17% of total equity) from the initial 11 crore shares (2.6%).
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If fully subscribed, Vedanta could raise approximately <span class='webrupee'>₹</span>6,500 crore from the OFS.
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The stock dropped to an intraday low of <span class='webrupee'>₹</span>528, down nearly 35% from its peak of <span class='webrupee'>₹</span>807 in May 2024.
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Despite the recent drop, the stock remains over 85% above its 52-week low of <span class='webrupee'>₹</span>285.
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The stock has lost nearly 17% in August alone and faced declines in July and June, despite a strong rally earlier in the year.
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Vedanta aims to raise $2.5 billion to manage its substantial debt, following a recent <span class='webrupee'>₹</span>8,500 crore Qualified Institutional Placement (QIP) and a paused steel business sale.
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Hindustan Zinc is expected to announce a special dividend payout of <span class='webrupee'>₹</span>8,000 crore and is also considering a second interim dividend.