 |
|
The Indian government's offer-for-sale (OFS) of shares in Hindustan Zinc Limited (HZL) has been met with overwhelming interest from institutional investors. Bids exceeding Rs 3,400 crore were received for over 6.69 crore HZL shares, representing a significant oversubscription of the 4.75 crore shares initially offered to institutional investors. This strong response indicates a positive sentiment towards HZL and confidence in the government's disinvestment program.
The OFS, which aims to sell a total of 5.28 crore shares, representing 1.25% of HZL's equity, is expected to generate significant revenue for the government. The sale is being conducted in two phases, with institutional investors participating in the first phase on Wednesday. Retail investors will have the opportunity to participate in the second phase starting on Thursday. The government also has a greenshoe option to retain additional subscription of a similar amount, which could further increase the proceeds from the sale.
The success of the HZL OFS adds to the momentum of the government's disinvestment program. The government has already raised Rs 5,176 crore through minority stake sales in Central Public Sector Enterprises (CPSEs) in the current fiscal year. The proceeds from the HZL stake sale will further boost the government's disinvestment kitty, which aims to generate revenue to fund various development initiatives and reduce the fiscal deficit. While HZL shares experienced a decline of 8.28% on the BSE on Wednesday, closing at Rs 513.15 per share, the strong demand for the OFS indicates investor confidence in the company's future prospects.
Source: HZL OFS over-subscribed by institutional investors; attracts Rs 3,400-crore worth bids