Investors Flock to Hindustan Zinc Stake Sale: A Double Success on Day One

The government's offer-for-sale of over 4.75 crore Hindustan Zinc Ltd shares saw immense interest from institutional investors, with bids totaling nearly Rs 3,400 crore. The offer was oversubscribed, prompting the use of the green shoe option. If fully subscribed, it could earn the exchequer over Rs 5,000 crore.

The government's offer-for-sale of Hindustan Zinc Ltd (HZL) shares has generated considerable interest among institutional investors. On the first day, these investors submitted bids worth almost Rs 3,400 crore, significantly exceeding the offer size of 4.75 crore shares. The overwhelming response has prompted the government to exercise the green shoe option, signaling strong market confidence in the sale.

Hindustan Zinc, part of the Vedanta Group, witnessed bids for over 6.69 crore shares at an indicative price of Rs 505.51 each by 1530 hours. This demand surpasses the stock reserved for institutional investors by 1.41 times, highlighting notable investor confidence in the company's future prospects.

The government, holding a 29.54% stake in HZL, aims to offload more than 5.28 crore shares through the offer, potentially earning over Rs 5,000 crore for the exchequer if the sale is fully subscribed. The funds from the stake sale will enhance the government's disinvestment pool, which has already garnered Rs 5,176 crore from other CPSEs this fiscal year.

(With inputs from agencies.)