 "Hindustan Zinc slips 8% after Vedanta begins partial stake sale via OFS")
Hindustan Zinc OFS news: Hindustan Zinc (HZL) share price slipped 8 per cent to Rs 528 on the BSE in Friday's intraday trade after Vedanta began offloading its partial stake in the company via offer for sale (OFS) route.
On Wednesday, Vedanta informed the exchanges that its board has approved the sale of up to 133.7 million shares, representing 3.2 per cent of equity in HZL, via an offer for sale (OFS) at a floor price of Rs 486 per share. The floor price is at a discount of 15 per cent to HZL's Wednesday's closing price of Rs 572.95 on the BSE. Vedanta is the promoter of HZL.
The OFS opened today i.e. August 16, 2024, for non-retail investors. It will open for retail investors on Monday, August 19, 2024, who have reservations for 10 per cent of the shares on offer.
Meanwhile, Hindustan Zinc share price is trading lower for a third straight day, falling 14 per cent during the period. It has corrected 35 per cent from its 52-week high of Rs 807 touched on May 22, 2024. At 09:33 AM, the stock was trading 7 per cent lower at Rs 534.60 as compared to 1.1 perc cent rise in the BSE Sensex.
Shares of Vedanta, on the other hand, were trading nearly 2 per cent higher at Rs 426.95 on the BSE.
At the end of June 2024, Vedanta held 64.92 per cent stake in HZL, while the central government held 29.54 per cent in the company, which is currently valued at Rs 2.42 trillion. Hindustan Zinc is the country's largest producer of zinc.
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In a separate development, Hindustan Zinc informed the exchanges that a meeting of the board of directors of the company is proposed to be scheduled on Tuesday, August 20, 2024, to consider and approve the second interim dividend on equity shares, if any, for the financial year 2024-25.
The record date for the purpose of determining the entitlement of the equity shareholders for the said dividend, if declared, has been fixed as Wednesday, August 28, 2024, HZL said.