Hindustan Zinc shares plunge 8% as centre to dilute 2.5% stake via OFS

Shares of Hindustan Zinc (HZL) successful aboriginal commercialized connected Wednesday slipped up to 8 per cent to the day's debased terms of Rs 514.1 aft the company's connection for merchantability (OFS) opened for the non-retail capitalist class today. At astir 10:28, the banal of Vedanta's subsidiary traded anemic by 7.6 per cent oregon Rs 42.55 astatine Rs 516.9 per stock connected the BSE.

As portion of the OFS, the authorities aims to dilute 1.25 per cent involvement successful the entity with an further green-shoe enactment of 1.25 per cent.

The level terms of the OFS has been decided arsenic Rs 505, a astir 10 per cent discount to the erstwhile day's closing price.  At the level price, the connection successful lawsuit of afloat subscription tin rake successful Rs 5,300 crore for the centre.

The connection for the non-retail capitalist category opened connected Wednesday, portion the aforesaid shall beryllium unfastened for retail investors connected November 7 (Thursday).

As of the September quarter, the company's shareholding information showed that the Centre had arsenic overmuch 29.54 per cent involvement successful the entity.

Under the offer, the seller oregon the Government of India proposes to merchantability up to 5,28,16,488 equity shares representing up to 1.25 per cent of the full paid-up stock superior with an enactment to merchantability further 5,28,16,487 shares (the oversubscription option).

The allocation shall beryllium astatine oregon supra the level terms connected terms precedence ground astatine aggregate clearing prices, said the company's filing with the exchanges.

Hindustan Zinc stock terms performance

The company's shares successful the past 1 twelvemonth person zoomed 73 per cent, portion the Nifty Metal scale during the aforesaid clip has climbed 47 per cent.