Government's Strategic Stake Sale: Boosting Disinvestment Coffers

The government has successfully raised Rs 3,449 crore by selling a 1.6 per cent stake in Hindustan Zinc Ltd through an offer-for-sale. This strategic move bolstered disinvestment efforts, contributing to the Rs 8,625 crore gathered this fiscal year from similar sales, enhancing government revenue.

The government has secured Rs 3,449 crore by offloading a 1.6 per cent stake in Hindustan Zinc Ltd through an offer-for-sale (OFS). This two-day OFS, conducted on November 6-7, was a part of the government's disinvestment strategy.

The initial offer proposed selling over 5.28 crore shares, roughly 1.25 per cent stake, with an option to absorb additional subscriptions if available. Institutional investors showed robust interest, buying nearly 1.58 per cent on the first day, while retail demand remained subdued the following day.

The sale increased the government's disinvestment fund, raising its total to Rs 8,625 crore this fiscal. Other significant sales included Rs 2,346 crore from GIC's OFS and Rs 2,015 crore from Cochin Shipyard, supported by SUUTI remittances of Rs 815 crore.