Hindustan Zinc OFS: Government to divest 2.5% stake in Vedanta Unit

The Indian government is set to sell up to 2.5% of its equity stake in Hindustan Zinc Ltd (HZL) through an offer for sale (OFS). Initially, the government plans to divest 1.25% of its stake, with an option to sell an additional 1.25% as a green shoe option.

Shares of Hindustan Zinc Ltd closed at ₹559.45 on the BSE, marking a rise of ₹16.25 or 2.99%.

Key Details:

The OFS will commence on November 6, 2024, for non-retail investors. Retail investors can place their bids the following day, November 7.

Tuhin Kanta Pandey, Secretary of the Department of Investment and Public Asset Management (DIPAM), announced the sale via Twitter, confirming the government's plan to divest a total of 2.5% equity if the green shoe option is exercised.

Ownership Structure:

Vedanta holds a 63.42% stake in Hindustan Zinc.

The Indian government owns 29.54%.

LIC owns 2.76%, while Indian mutual funds hold a minimal 0.06% stake.

Small shareholders, with an authorized share capital of under ₹2 lakh, collectively own 1.51%, totaling approximately 4.33 lakh shareholders as of the June quarter.

Market Performance:

Shares of Hindustan Zinc Ltd ended at ₹559.45, up by ₹16.25 or 2.99% on the BSE.