Hindustan Zinc OFS sees strong retail subscription of 2.3 times on Day 2
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The bids came at a floor price of Rs 685 per share, even as the stock traded well above this level in the secondary market, with the last traded price around Rs 715.60 during the session.
The strong retail response followed robust demand from institutional investors on the first day of the OFS. On Day 1, the non-retail portion was subscribed 142%, indicating healthy interest from long-term investors at the discounted floor price.
The issue was structured over two days, with non-retail investors allowed to bid on the first day and retail investors participating on the second day, along with non-retail bidders carrying forward unallotted bids.
The OFS was launched by promoter Vedanta as part of its plan to pare a small portion of its holding in Hindustan Zinc while retaining majority control. Vedanta offered up to 0.79% stake through the base issue, with an option to sell an additional 0.79% stake in case of oversubscription.
Even after the transaction, the promoter will continue to hold a dominant stake in the company, signalling that the sale is aimed at incremental monetisation rather than a strategic exit.
Also read: Vedanta Q3 Results: Profit surges 61% YoY to Rs 5,710 crore; revenue advances 37%Hindustan Zinc is one of India’s largest mining companies and the world’s biggest integrated zinc producer, with a significant presence in lead and silver. Its low-cost operations, steady cash flows and track record of dividends have made it a preferred stock among both institutional and retail investors.
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