Centre to divest up to 2.5% stake in Hindustan Zinc via OFS at Rs 505 floor price

"Government will divest 1.25% equity with an additional 1.25% as green shoe option," Secretary DIPAM has said.

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26 Aug, 2025 12:21

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Government has announced the long-awaited plan to sell up to 2.5% stake Hindustan Zinc at a floor price of Rs 505 per share through an Offer for Sale starting November 6, Secretary DIPAM and the company has informed.

"Government will divest 1.25% equity with an additional 1.25% as green shoe option," Secretary DIPAM has said. Over 5.28 crore shares of face value Rs 2 each (1.25% equity) is the base offer for the OFS, with an equal amount as a green shoe option.

The floor price turns out to be a 10% discount to the last traded price at Rs 559.75 per share. Hind Zinc shares are higher by 76% so far this year.

Retail investors can bid on Thursday, November 7, while the issue will open for non-retail investors on Wednesday, November 6 on both BSE and NSE, Hind Zinc said. There will be an indicative price for the non-retail category which shall be displayed separately.

Ten percent of the offer size is reserved for retail investors, who can bid for shares up to Rs 2 lakh each.

Axis Capital, HDFC Securities, ICICI Securities and IIFL Securities are the brokers for the OFS.

As of September 2024, Centre holds 29.54 percent stake in HZL while Vedanta holds 63.42 percent stake in the metal firm.

Moneycontrol had reported in August that and Offer for Sale for Hindustan Zinc (HZL) was likely before the end of FY25. Cabinet had in 2022 given the approval to sell government’s entire stake in the company. Hindustan Zinc's demerger process will kickstart once the central government completes its long pending divestment process, chief executive officer Arun Misra had told Moneycontrol in an interview on April 19.

Hind Zinc on October 18 said its September quarter net profit rose 35% to Rs 2,327 crore as against Rs 1,729 crore in the year-ago period, helped by gains in zinc prices on prospects of stronger China demand and global supply worries.

Promoter Vedanta had in August launched an OFS to divest a 3.17 percent stake in the company, to help manage its substantial debt.

Hindustan Zinc has also been in talks over splitting the company into two units, a proposed that was being opposed by the Centre, Reuters reported earlier in October 2024.