Shares of Hindustan Zinc Ltd, a subsidiary of Vedanta Ltd, fell by nearly 7% on Wednesday morning as the Indian government initiated a two-day Offer for Sale (OFS) to divest up to a 2.5% stake in the company. The OFS, priced at ₹505 per share, reflects a nearly 10% discount to Hindustan Zinc’s current market price.
The sale, aimed at raising approximately ₹5,900 crore, opens today for non-retail investors, with retail investors able to participate on Thursday, November 7. The offer includes 5.28 crore shares, equating to 1.25% of the company’s equity, with an additional 1.25% available if demand exceeds expectations.
Hindustan Zinc’s recent Q2 results met analyst expectations, highlighting the company’s focus on production efficiency and cost management. Following the results, Motilal Oswal Financial Services (MOFSL) maintained its earnings outlook, expecting the company to maintain its profitability focus.
As of 9:22 AM, Hindustan Zinc shares were trading 6.83% lower at ₹521.40 on the NSE.
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