Government Nets ₹3,449 Crore from Hindustan Zinc OFS

The Government of India has raised a substantial sum of ₹3,449 crore by selling a 1.6% stake in Hindustan Zinc Ltd (HZL) through an offer-for-sale (OFS). The sale took place over two days, on November 6th and 7th, and involved the sale of nearly 5.3 crore shares, or about a 1.25% stake in the company. The offer included a greenshoe option, allowing for additional subscriptions, which was fully utilised.

This strategic stake sale is part of the government’s ongoing disinvestment plan, which aims to meet its fiscal targets and boost revenue. Before this transaction, the government held a 29.5% stake in Hindustan Zinc, making it the largest minority shareholder in the Vedanta Group firm. This move further aligns with the government’s broader goal of reducing its stake in public sector enterprises, freeing up resources for other critical sectors, and encouraging private participation in the market.

The sale of Hindustan Zinc shares is seen as a positive step towards increasing the government’s disinvestment coffers, providing a much-needed boost to its financial reserves. The share demand was robust, with investors responding well to the offering, showcasing confidence in the company’s long-term prospects.

Hindustan Zinc Share Performance Today

On the trading front, Hindustan Zinc shares price showed a stable performance today. The stock opened at ₹505.90 and experienced some volatility throughout the day, reaching a high of ₹509.65 and a low of ₹494.00. By the end of the trading session, the stock settled at ₹507.60, reflecting a 0.27% increase. The modest rise in the share price indicates investor confidence, likely buoyed by the completion of the OFS and the company’s solid fundamentals.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.