NEW DELHI: The Centre on Tuesday announced its plan to divest up to 2.5% of its stake in Hindustan Zinc through an offer for sale (OFS) set to commence on November 6. The floor price for this offering has been set at `505 per share. The government is likely to raise Rs 5,000 crore through the OFS.
The government plans to sell approximately 5.28 crore shares amounting to 1.25% of the equity, with an option to add another 1.25% of equity. The offer will be available for non-retail investors starting November 6. These investors will have the opportunity to express their interest in carrying forward any unallocated bids to the following day, November 7.
Retail investors will have the opportunity to submit their bids on November 7. According to OFS regulations, only retail investors and employees will be permitted to place their bids on Thursday. Non-retail investors who place their bids on Wednesday and opt to carry forward any unallocated bids to the following day will also have the option to revise their bids.
Hindustan Zinc, a subsidiary of Vedanta, is a major producer of zinc, lead, and silver. Based in Udaipur, the company operates various mines and smelters, focusing on mining practices, resource conservation, and maintaining its position in metal production.
The government holds 29.5% in the company.