Hindustan Zinc announces OFS , sets floor price at Rs 486/share

Hindustan Zinc Limited (HZL) on Wednesday announced its offer for sale will begin on August 16 and conclude on August 19. It set the floor price at Rs 486 per share. 

Earlier on Wednesday, its parent company Vedanta revised its stake sale in HZL to 3.31% via the OFS route from an earlier plan of selling 2.60%.

The metal and mining major will now be selling 14 crore shares instead of 11 crore shares in HZL it had announced on Tuesday.

HZL OFS' floor price was at a discount of 16% over Wednesday's closing price of Rs 576.

The stock on Wednesday closed down 0.7% over Tuesday's closing price.

Vedanta's stake sale will be in two tranches. On August 16, Friday, it will sell over 5.14 crore equity shares representing 1.22% of the total equity share capital of HZL to non-retail Investors only while on August 19, the issue will open for retail investors and those non-retail investors who choose to carry forward their unallotted bids.

The OFS will have an option of selling additional 8.23 crore shares representing 1.95% equity in the event of oversubscription.

At the end of the June quarter, Vedanta owned 64.92% stake in HZL while the government had 29.54%.