Vedanta Group company Hindustan Zinc Limited’s offer for sale (OFS) received a strong response on the first day.
The company told the stock market that on the first day non-retail investors placed bids for 6.3 crore shares.
According to BSE data, bids were received for a total of 6,36,05,891 equity shares against the offer of 5,14,40,329 equity shares.
Thus, the offer got a subscription of 1.23 times or 137.39 percent. Bids were received at a price of Rs 494.54 per share against the base price of Rs 486 per share.
Hindustan Zinc’s promoter Vedanta on Friday offered to sell 5,14,40,329 equity shares of the company to non-retail investors.
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.
What do experts say
According to analysts, the stake sale of Hindustan Zinc Limited is positive for the lenders and bondholders of Vedanta Limited and (its parent company) Vedanta Resources Limited.
The reduction in debt will reduce the interest burden on Vedanta Resources. Along with this, the stake sale will also reduce the future dividends that Vedanta receives from HZL, which has been a source of cash for the group for many years.
Stock Crash
Talking about the stock of Hindustan Zinc Limited on Friday, the last trading day of the week, it fell by about 10 percent. At the end of trading, the stock was at Rs 519.95.
It closed down by 9.25% compared to the previous day. This decline has come at a time when the stock market was booming on Friday.
Let us tell you that amid strong growth in the local stock markets, a huge jump of Rs 7.30 lakh crore was seen in the wealth of investors on Friday.
The BSE benchmark Sensex jumped 1,330.96 points or 1.68 per cent to close at a two-week high of 80,436.84 points. The Sensex also recorded the highest gain in a single trading session in the last two months.
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