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Hindustan Zinc Tumbles 8% with Government’s 2.5% Stake Sale Decision; Details Inside

Hindustan Zinc Ltd (HZL) shares dropped 8.1% to ₹514.10 on November 6 after the government announced plans to sell a 2.5% stake at a floor price of ₹505.
Hindustan Zinc Tumbles 8% with Government's 2.5% Stake Sale Decision; Details Inside

On Wednesday, November 6, shares of Hindustan Zinc Ltd (HZL) fell by 8.1% to ₹514.10 on the BSE following the government’s announcement to divest a 2.5% stake at a floor price of ₹505 per share through an Offer for Sale (OFS). The move is expected to generate over ₹5,000 crore based on the floor price set.

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The OFS opens today for institutional investors, while retail investors can participate starting Thursday, November 7. The government plans to divest an initial 1.25% equity stake, offering to offload an additional 1.25% if demand is high.

A total of 5.28 crore shares, equivalent to a 1.25% stake, will be sold, with an option to increase by the same amount in response to demand. The set floor price reflects a 9.7% discount on the previous closing price of ₹559.45.

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Hindustan Zinc, a subsidiary of Vedanta Ltd, is a major global producer of zinc, lead, and silver. The Indian government holds a 29.54% stake, Vedanta owns 63.42%, and LIC holds 2.76% in HZL.

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Earlier in August, Vedanta had also announced plans to divest up to 3.31% of its holdings in HZL through an OFS at ₹486 per share.

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