A major player in the metal industry, Vedanta Limited announced on Friday that it would employ the oversubscription option in Hindustan Zinc Limited’s ongoing offer for sale (issue) to the extent of over 1.21 crore equity shares, or 0.29%, in addition to the 5.14 crore equity shares, which represent 1.22% of the company’s total issued and paid-up equity share capital and are part of the base offer size.
HZL’s Stake
1.22% of HZL’s stake, or 5,14,40,329 equity shares, are what Vedanta hopes to sell in the offering that opened to non-retail buyers on Friday. Along with the 5.14 crore equity shares that are part of the basic offer size, this will account for 1.22 percent of the company’s total issued and paid-up equity share capital. Using an OFS, Vedanta is trying to generate around Rs 6,000 crore by unloading up to 3.31 percent of its investment in HZL between August 16 and 19.
Vedanta Disposing Equity Shares
The floor price per share is Rs 486. Up to 14 crore equity shares, or 3.31 percent of the total equity ownership in the company, could be sold through the offer for sale, with board approval. Vedanta would dispose up to 13.37 crore (13,37,44,856) equity shares through the OFS from August 16–19, 2024, according to a separate filing from Hindustan Zinc. This amounts to 3.17 percent of the company’s equity ownership.
Vedanta’s Share Price
Vedanta’s share price increased 2.03 percent to Rs 428.75 a share on the NSE at Friday’s closing. The corporation held 64.92 percent of HZL at the end of the June quarter, while the government held 29.54 percent. Vedanta intends to demerge its businesses in iron and steel, basic metals, electricity, oil and gas, and aluminum into distinct listed companies.
