Shares of Hindustan Zinc (HZL) in early trade on Wednesday slipped up to 8 per cent to the day's low price of Rs 514.1 after the company's offer for sale (OFS) opened for the non-retail investor category today. At around 10:28, the stock of Vedanta's subsidiary traded weak by 7.6 per cent or Rs 42.55 at Rs 516.9 per share on the BSE.

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As part of the OFS, the government aims to dilute 1.25 per cent stake in the entity with an additional green-shoe option of 1.25 per cent.

The floor price of the OFS has been decided as Rs 505, a nearly 10 per cent discount to the previous day's closing price.  At the floor price, the offer in case of full subscription can rake in Rs 5,300 crore for the centre.

The offer for the non-retail investor category opened on Wednesday, while the same shall be open for retail investors on November 7 (Thursday).

As of the September quarter, the company's shareholding data showed that the Centre had as much 29.54 per cent stake in the entity.

Under the offer, the seller or the Government of India proposes to sell up to 5,28,16,488 equity shares representing up to 1.25 per cent of the total paid-up share capital with an option to sell additional 5,28,16,487 shares (the oversubscription option).

The allocation shall be at or above the floor price on price priority basis at multiple clearing prices, said the company's filing with the exchanges.

Axis Capital, HDFC Securities, ICICI Securities and IIFL Securities are brokers on behalf of the sellers. Furthermore, IIFL Securities will act as the Settlement broker for the offer.

Hindustan Zinc share price performance

The company's shares in the last one year have zoomed 73 per cent, while the Nifty Metal index during the same time has climbed 47 per cent.