Our fully integrated zinc operations currently hold about 75% market share in India’s primary zinc industry. With an annual capacity of 800 MT, we are the third-largest silver producer in the world. With over 50 years of experience, we prioritize the safety of our people and the conservation of limited natural resources through innovation and technology. Our mine life spans over 25 years, with a total R&R base of 456.3 million tonnes and an average zinc-lead grade of 6.8%. All told, Hindustan Zinc is the largest and second-largest integrated zinc producer in the world.
Non-retail investors responded strongly to the government’s offer-for-sale (OFS) for Hindustan Zinc Ltd (HZL) shares, with the offering being subscribed 1.41 times the base size in the non-retail category, according to Tuhin Kanta Pandey, Secretary of the Department of Investment and Public Asset Management (DIPAM), on Wednesday, November 6, 2024.
In contrast to the 4.75 crore shares allotted to them, institutional investors placed bids for over 6.69 crore HZL shares, totalling approximately Rs. 3,400 crore. The government used the green shoe option in response to this high demand, which allowed for the retention of more subscriptions.
More than 5.28 crore shares, or 1.25 per cent of the total, will be sold when the OFS opens to retail investors on Thursday. The greenshoe option allows for additional subscriptions of a similar size. If all 2.5% of the shares are purchased, the sale could generate more than Rs. 5,000 crore for the government’s disinvestment goal.
The Indian government owns 29.54% of Hindustan Zinc, whereas Vedanta owns 63.42%. In India, mutual funds own a pitiful 0.06% of the company, while LIC owns 2.76%. Small shareholders, defined as those with an authorized share capital of less than Rs. 2 lakh, hold 1.51% of Hindustan Zinc. There were roughly 4.33 lakh small shareholders in the company as of the June quarter.
Hindustan Zinc’s stock is currently trading at Rs. 508.55 per share, down nearly 1% from its lowest traded price of Rs. 506.05.
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.
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