The government's offer-for-sale for more than 4.75 crore Hindustan Zinc Ltd (HZL) shares to institutional investors was oversubscribed on November 6, with institutional buyers putting bids worth close to Rs 3,400 crore.
On the first day of the two-day OFS, bids came in for over 6.69 crore shares, which is 1.41 times the total of 4.75 crore shares on offer for institutional buyers.
The issue will open for retail investors on Thursday.
"Offer for Sale in Hindustan Zinc Limited (HZL) received enthusiastic response from non-retail investors today. Government has decided to exercise the green shoe option," Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey said on X.
The government, which holds a 29.54 percent stake in HZL, is the largest minority shareholder in the Vedanta Group firm.
Through the two-day OFS, the government is selling over 5.28 crore shares, or 1.25 per cent stake, with a greenshoe option to retain additional subscriptions of a similar amount.
Institutional investors on Wednesday put in bids for over 6.69 crore HZL shares at an indicative price of Rs 505.51 a share as of 1530 hours, against more than 4.75 crore shares reserved for them.
If the 2.5 percent stake on offer gets fully subscribed, the HZL stake sale will garner over Rs 5,000 crore to the exchequer.
Shares of HZL settled 8.28 percent lower at Rs 513.15 apiece on the BSE.
The proceeds from the HZL stake sale would add up to the government's disinvestment kitty. So far this fiscal, the government has raised Rs 5,176 crore through minority stake sales in Central Public Sector Enterprises (CPSEs).
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