Hindustan Zinc Shares Drop as Vedanta Ups OFS Stake

16 Aug 2024 , 12:13 PM

Hindustan Zinc Ltd. shares dropped over 7% in early trading on Friday after its promoter, Vedanta Ltd., announced an increased equity sale through an Offer for Sale (OFS).

Vedanta Ltd., which holds a 64.92% stake in Hindustan Zinc, revised its plan on Wednesday to sell 13.3 Crore shares, representing 3.17% of total equity. This is an increase from the earlier plan of selling 11 Crore shares or 2.6% of total equity.

At the time of writing, shares of Hindustan Zinc Ltd is trading at ₹528 which is a 7.53% dip than the previous close. Hindustan Zinc Ltd stock has gained a total of 68% in the last one year, and almost 66% since the beginning of the year.

The price for the Offer For Sale has been set at ₹486 per share, which is a 15% discount to Hindustan Zinc’s closing price on Wednesday.

The OFS is set to open for non-retail investors today, with retail investors able to participate starting Monday. If Vedanta sells all 13.37 Crore shares at the floor price, it stands to raise approximately ₹6,500 Crore.

At the time of writing, shares of Vedanta Ltd is trading at ₹424 which is a 1.05% gain than the previous close. Vedanta Ltd stock has gained a total of 79% in the last one year, and almost 65% since the beginning of the year.