BAJAJ BROKING

Notification
No new Notification messages
Vishal Mega Mart IPO is Open!
Apply for the Vishal Mega Mart IPO through UPI in just minutes.
Open a Free Demat Account
Pay ZERO maintenance charges for the first year, get free stock picks daily, and more.
Trade Now, Pay Later with up to 4x
Never miss a good trading opportunity due to low funds with our MTF feature.
Track Market Movers Instantly
Stay updated with real-time data. Get insights at your fingertips.

Vedanta Raises Hindustan Zinc OFS to 13.37 Crore Shares, 3.17% Stake

Listen to our Podcast: Grow your wealth and keep it secure.

0:00 / 0:00

Synopsis:

Vedanta to sell up to 13.37 crore shares, 3.17% stake in Hindustan Zinc via OFS at ₹486 per share, raising ₹6,500 crore. The sale will increase Hindustan Zinc's free float to nearly 6%. The OFS opens today, August 16 and will close on August 19.

Vedanta - Hindustan Zinc OFS News Today

Vedanta Limited has announced its plan to sell 13.37 crore Hindustan Zinc shares through an Offer for Sale (OFS). This sale, accounting for 3.17% of Hindustan Zinc’s total equity, is part of Vedanta's broader strategy to manage its financial obligations.

Offer for Sale Details

Initially, Vedanta had planned to sell up to 11 crore shares or 2.6% of Hindustan Zinc's equity. However, the company has now increased the offer to 13.37 crore shares. The floor price for the OFS is set at ₹486 per share, a 15% discount to Hindustan Zinc share price, which closed at ₹576 on Wednesday.

At this floor price, the sale is expected to generate approximately ₹6,500 crore for Vedanta. The Offer for Sale will be open for non-retail investors starting today, August 16, and will close on August 19. Retail investors will have the opportunity to participate on the last day of the OFS.

Impact on Hindustan Zinc's Free Float

Currently, Hindustan Zinc's free float stands at just 2.5%. This OFS is expected to more than double the company's free float to nearly 6%, providing greater liquidity in the market.

The company's ownership structure includes a 64.92% stake held by Vedanta, a 29.54% stake by the government, 2.76% by LIC, and a minimal 0.06% by mutual funds. Small shareholders collectively own 1.51% of the company.

Strategic Implications for Vedanta

The funds raised from this OFS are likely to be used by Vedanta for part payment of its debt in India and potentially distributed as a dividend to its parent company, Vedanta Resources, which has substantial debt obligations.

Specifically, Vedanta and Vedanta Resources face pending debt obligations of $1.2 billion and $1 billion, respectively, in the financial year 2025.

This sale follows Vedanta’s recent move to release some pledged Hindustan Zinc shares, utilising ₹8,500 crore raised through a Qualified Institutional Placement (QIP).

Market Reaction

In the wake of these announcements, Hindustan Zinc share price ended 0.7% lower at ₹576, while Vedanta share price also saw a slight decline, closing 0.6% lower at ₹420 on Wednesday.

As the Offer for Sale progresses, market participants will closely watch how these developments impact both Vedanta and Hindustan Zinc's share prices and overall market performance.

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

For All Disclaimers Click Here: https://bit.ly/3Tcsfuc

Share this article: 

Read More Blogs

Our Secure Trading Platforms

Level up your stock market experience: Download the Bajaj Broking App for effortless investing and trading

Bajaj Broking App Download

8 Lacs+ Users

icon-with-text

4.4+ App Rating

icon-with-text

4 Languages

icon-with-text

₹4700+ Cr MTF Book

icon-with-text