Hindustan Zinc: Government to sell up to 2.5% stake via OFS

The largest integrated zinc producer in India and the second-largest in the world is Hindustan Zinc. Our mine life is more than 25 years, with a total R&R base of 456.3 million metric tons and an average zinc lead grade of 6.8%. In the primary zinc industry in India, our fully integrated zinc operations currently account for about 75% of the market. We have an annual capacity of 800 MT, making us the third largest producers of silver in the world.

The central government will sell its 2.5 percent stake in Hindustan Zinc

On Wednesday and Thursday, the Center plans to sell 2.5% of the total share capital of Hindustan Zinc Ltd. (HZL) for Rs 505 per share through an offer for sale (OFS). The current market price of Rs 559.5 is 9.7% higher than the offer price. The two-day OFS opens on Wednesday for institutional bidders and Thursday for retail investors.

Hindustan Zinc stated in an exchange filing that the Center is planning to sell 52.8 million shares, or 1.25% of the total paid-up capital, and that an additional 52.8 million shares may be sold in the event of an oversubscription.

Hindustan Zinc’s stakeholders

Hindustan Zinc is owned by Vedanta Limited to the tune of 63.42% and the Government of India to 29.54%. The information that is currently available shows that mutual funds own 0.06% and LIC owns 2.76%. The promoter of Hindustan Zinc, Vedanta, had earlier in August suggested selling up to 5,14,40,329 equity shares of the business to investors who are not retail customers. On August 19, Vedanta had announced that it would provide retail and non-retail investors with an oversubscription option for an additional 8,23,04,527 equity shares, or 1.95% of the equity capital.

Vedanta had previously announced that it would sell up to 14 crore shares, or 3.31% of Hindustan Zinc Ltd. (HZL), at a floor price of ₹486 per share during an offer for sale (OFS) that would take place from August 16–19.

Performance of the Hindustan Zinc stock

Over time, shares of Hindustan Zinc have produced impressive returns. Over the last six months, the stock has increased by 19.05%, and it has increased by 8.2% in the last month. Shares rose 75.96% so far this year and 87.11% over the last 12 months, demonstrating steady growth and strong investor appeal.

Hindustan Zinc Ltd.’s stock dropped over 7% during the day

Due to the government selling off a 2.5% stake, Hindustan Zinc Ltd.’s stock is currently trading at Rs. 518.50 per share, while it was low traded at Rs. 514.10.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.