Government Unlocks Value with Hindustan Zinc Stake Sale

The government is set to sell a 2.5% stake in Hindustan Zinc through an offer for sale, aiming to raise over Rs 5,000 crore. The sale opens for institutional investors on Wednesday, followed by retail investors on Thursday. The floor price is reported at Rs 505 per share.

The government has announced its plan to divest up to a 2.5% stake in Hindustan Zinc, poised to generate over Rs 5,000 crore through an offer for sale (OFS) at a floor price of Rs 505 per share.

The two-day event kicks off for institutional buyers on Wednesday and for retail buyers on Thursday. Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey confirmed the details in a social media post, noting the potential use of a greenshoe option for an additional 1.25% stake.

Notably, the floor price is set at a 9.7% discount to Tuesday's closing price of Rs 559.45, which marked a 2.99% increase on the BSE.

(With inputs from agencies.)