The Indian government, in a recent development, has taken a step towards disinvestment, announcing a plan to sell up to a 2.5 per cent Hndustan Zinc Limited (HZL) through an Offer for Sale (OFS). The announcement of this was made through an exchange filing by Hindustan Zinc.
As per the filing, scheduled to begin on November 6, 2024, aligning with the government’s broader objective of asset monetisation.
Here’s a breakdown of the sale, investor timings, and what it means for the markets.
- Offer Breakdown: Base and Greenshoe Option
The OFS consists of a base offer of 1.25 per cent of HZL’s total equity, with an additional 1.25 per cent available as a greenshoe option in case of excess demand.
If fully exercised, this could mean up to 10.56 million shares will be offered, representing 2.5 per cent of Hindustan Zinc's total equity. The floor price is set at Rs 505 per share.
- Government and Vedanta Stake in HZL
According to the latest data from September 2024, the Indian government holds a 29.54 per cent stake in Hindustan Zinc.
On the other hand, the mining giand and also the major stakeholder, Vedanta, holds a 63.42 per cent stake.
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- Two-Day Trading Window: November 6 and 7
The offer is structured to take place over two days, giving both non-retail and retail investors a chance to participate.
Take a look at how it works:
Day 1 (November 6, 2024): On the fiest day, it is exclusively for non-retail investors, who can place their bids starting at 9:15 a.m. until 3:30 p.m. Indian Standard Time (IST).
Day 2 (November 7, 2024): Retail investors can place their bids, and non-retail investors who did not secure an allotment on Day 1 may choose to carry forward their bids for Day 2. The trading window will again be open from 9:15 a.m. to 3:30 p.m. IST.
