Hindustan Zinc OFS: Govt to sell 2.5% in Vedanta subsidiary to raise over ₹5,000 crore; Check floor price, key dates

Hindustan Zinc OFS: The government will sell up to 2.5 per cent of its stake in Hindustan Zinc through an offer for sale (OFS) at a floor price of ₹505 per share. The stake sale would fetch over ₹5,000 crore at the floor price via the OFS. The two-day subscription of the OFS opens for institutional bidders on Wednesday, November 6, and retail investors on Thursday, November 7, 2024.

"Offer for sale in Hindustan Zinc Limited (HZL) opens tomorrow (Wednesday) for non-retail investors. Retail investors can bid on Thursday, 7th November. The government will divest 1.25 per cent equity with an additional 1.25 per cent as greenshoe option," said Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey in a post on X.

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The government is selling over 5.28 crore shares, or 1.25 per cent of the stake, with a greenshoe option to retain an additional subscription of a similar amount. The floor price is 9.7 per cent below Tuesday's closing price of ₹559.45. Shares of Hindustan Zinc settled 2.99 per cent higher at ₹559.45 apiece on the BSE.

The metals-to-mining conglomerate Vedanta announced in August 2024 that its board of directors had approved selling up to 11 crore shares or a 2.6 per cent equity stake in its mining subsidiary Hindustan Zinc through an OFS. However, the dates for the OFS subscription and amount were not announced then.

"We wish to inform you that the duly authorised Committee of Directors of Vedanta, at its meeting held today on August 13, 2024, has approved the sale of up to 11,00,00,000 equity shares of Hindustan Zinc, representing 2.60 per cent of the issued and paid-up equity share capital of HZL, by way of an offer for sale through the stock exchange mechanism," said Vedanta in an exchange filing.

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Hindustan Zinc Q2 Results

Hindustan Zinc Ltd’s profit for the July-September quarter of FY25 grew by a third compared to a year earlier as its products fetched better prices and its electricity bill went down using renewable energy. The zinc/lead division generated a revenue of ₹6,403 crore in the second quarter, an increase from ₹5,259 crore a year earlier. Silver segment reported a revenue of ₹1,550 crore, up from ₹1,297 crore in the previous year's second quarter.

The Vedanta Group company said it will invest ₹327 crore for a minimum 26 per cent stake in co-group firm Serentica Renewables. The company’s energy consumption included 14 per cent renewable power during the quarter, compared to negligible levels a year ago, helping it pare its power costs.

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India's largest producer of zinc, lead, and silver reported a consolidated profit of ₹2,327 crore for the quarter ended September, 35 per cent higher year-on-year. Due to higher zinc prices and increased metal production, consolidated revenue grew 22 per cent to ₹8,252 crore in the quarter under review.