Government's Successful Stake Sale: HZL Shares Oversubscribed by Institutional Investors

The government's offer-for-sale of over 4.75 crore HZL shares to institutional investors was heavily oversubscribed, receiving bids worth Rs 3,400 crore. With an aim to sell over 5.28 crore shares, including a greenshoe option, the sale could bring over Rs 5,000 crore to the government's disinvestment funds.

The government's initiative to divest its shares in Hindustan Zinc Limited (HZL) has received a significant boost as institutional investors have shown substantial interest. On Wednesday, the offer-for-sale (OFS) saw bids for over 6.69 crore shares, far exceeding the 4.75 crore shares initially available for institutional buyers.

With the issue opening to retail investors on Thursday, the sale, which includes a greenshoe option for additional shares, has the potential to increase the government's revenue by over Rs 5,000 crore. This figure would significantly benefit the disinvestment target for the fiscal year.

The share price at the end of Wednesday's trading session on the Bombay Stock Exchange saw a decline, settling at Rs 513.15 per share, a dip of 8.28%. Despite this, the successful subscription points to a healthy interest from the market.

(With inputs from agencies.)