Hindustan Zinc Ltd shares fell over 6 per cent in Monday's trade, in addition to 9 per cent drop on Friday, as the Day 2 of the ongoing offer for sale (OFS) by the promoter Vedanta kicked off. The non-retail portion of the Hindustan Zinc OFS was subscribed 111.11 per cent and the retail portion was subscribed 27.09 per cent so far.
Hindustan Zinc shares fell 6.01 per cent to hit a low of Rs 488.65 on BSE. With this, the stock has fallen 20 per cent in four days. The stock fell as the floor price for the HZL offer was set at Rs 486 apiece, which was at 15.17 per cent discount to Wednesday's closing price of Rs 572.95. Shares of Vedanta were up 0.47 per cent at Rs 430.95.
Hindustan Zinc had on Friday suggested that Vedanta has showed its intention to exercise the oversubscription option in the OFS to the extent of 1,21,65,562 equity shares, representing 0.29 per cent of the total issued and paid-up equity share capital of the company, in addition to 5,14,40,329 equity shares, representing 1.22 per cent of the total issued and paid-up share capital, forming the part of the base offer size.
"Accordingly, the total offer size will be up to 6,36,05,891 equity shares (representing 1.51 per cent of the of the total issued and paid-up equity share capital of the company) of which 63,60,590 equity shares i.e. 10 per cent equity shares of the offer would be reserved for allocation to retail investors on T+l day i.e. August 19, 2024, subject to receipt of valid bids, as part of the offer," Hindustan Zinc said.
Vedanta had earlier suggested that in the event that the oversubscription option is exercised, the equity shares forming part of the base offer size and the oversubscription option will represent up to 3.17 per cent of the total issued and paid up share capital of the company, i.e.13,37,44,856 equity shares.
The offer is being undertaken by Vedanta to gain access to funds for inter alia growth and expansion purposes and for optimisation of the capital structure.