Hindustan Zinc OFS offers 3.17 percent stake for sale at a discounted floor price

Anil Agarwal-promoted Vedanta will be selling 3.17 percent stake in Hindustan Zinc through an offer for sale (OFS) from August 16-19, an exchange filing said. The OFS will have a base size of 1.22 percent with an option of additional 1.95 percent stake for oversubscription, Hindustan Zinc said on August 14.

In total, 3.17 percent stake of HZL will be on offer at a floor price of Rs 486 per share in the issue that will open for non-retail investors on August 16, and for retail investors on August 19.

The company had revised the Offer For Sale (OFS) proposal earlier in the day, intending to offload more shares of Hindustan Zinc as compared to a previous announcement of OFS by the company on August 13, which proposed to sell 2.6 percent stake in Hindustan Zinc.

The group recorded its highest-ever annual refined zinc production in FY24, and commands 75 percent share in the primary market for the commodity. The group is also sitting on the world’s largest underground zinc-lead mine in India. Zinc is also essential to the steel making process and Vedanta Group has in the past shared its intention to ramp up its production capacity for the metal. Anil Agarwal has tied the demand for zinc with that of steel production in India.