Hindustan Zinc OFS: Vedanta Group’s metal company Hindustan Zinc Limited’s OFS got strong support from investors on the very first day and the company’s OFS was fully subscribed on the very first day. Hindustan Zinc informed the stock market that on the first day (Friday), non-retail investors placed bids for 6.3 crore shares.
Bids received for 6,36,05,891 equity shares against 5,14,40,329
This Vedanta Group company had sought bids for 5,14,40,329 equity shares. Whereas BSE data showed that the company received bids from investors for 6,36,05,891 equity shares. Let us tell you that this OFS offer of the company will close on Monday, August 19.
The company received bids at a price of Rs 494.54 per share
This simply means that Hindustan Zinc’s OFS got 1.23 times i.e. 137.39 percent subscription on the very first day. The company has received bids for subscription at a price of Rs 494.54 per share against the lower price range of Rs 486 per share. Hindustan Zinc’s promoter Vedanta had offered to sell 5,14,40,329 equity shares on Friday at a huge discount of 15 percent.
Subscription will open again on Monday for 8,23,04,527 equity shares
Vedanta said it will offer an additional 1.95 per cent of its equity capital, or 8,23,04,527 equity shares, to retail and non-retail investors on Monday. According to market analysts, the stake sale of Hindustan Zinc Limited is positive for the lenders and bondholders of Vedanta Limited and Vedanta Resources Limited.
Interest burden on Vedanta Resources Limited will be reduced
The reduction in bonds will reduce the interest burden on Vedanta Resources Limited. Along with this, the stake sale will also reduce the future dividends that Vedanta receives from Hindustan Zinc, which has been the main source of cash for the group for many years.
Latest Business News
