Government to sell 2.5% in HZL at floor price of Rs 505/share, aims to raise over Rs 5,000 crore

The government will sell up to 2.5 per cent stake in Hindustan Zinc at a floor price of Rs 505 per share through an offer for sale (OFS). The stake sale would fetch over Rs 5,000 crore at the floor price.

The two-day OFS opens for institutional bidders on Wednesday and for retail investors on Thursday.

"Offer for sale in Hindustan Zinc Limited (HZL) opens tomorrow (Wednesday) for non-retail investors. Retail investors can bid on Thursday, 7th November. Government will divest 1.25 per cent equity with an additional 1.25 per cent as greenshoe option," Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey said in a post on X.

The government is selling over 5.28 crore shares, or 1.25 per cent stake, with a greenshoe option to retain additional subscription of similar amount.

The floor price is at a discount of 9.7 per cent over Tuesday's closing price of Rs 559.45. Shares of HZL closed at Rs 559.45, up 2.99 per cent over previous close on the BSE.