Government Initiates Major Partial Stake Sale in Hindustan Zinc

The Indian government has launched an OFS to sell a 2.5% stake in Hindustan Zinc, which attracted minimal initial bids. Early bids reached only 0.39% of the base issue, with institutional investors offering for 1.88 lakh shares at Rs 506.61 each. Retail investors can bid Thursday.

The Indian government's recent offer for sale (OFS) of a 2.5% stake in Hindustan Zinc saw a slow start, with only 0.39% of the base issue subscribed in early trading on Wednesday.

Institutions bid for just 1.88 lakh shares at an indicative price of Rs 506.61 each by 10:30 A.M., despite the staggering over 4.75 crore shares set aside for them. The government has set a floor price of Rs 505 per share, hoping to gather more than Rs 5,000 crore if fully subscribed.

This crucial OFS spans two days, with the government planning to offload over 5.28 crore shares and retail investors lined up to participate on Thursday. Currently, Hindustan Zinc shares have dipped to Rs 516.65, marking a 7.65% decrease from Tuesday's closing on the BSE.

(With inputs from agencies.)