Anil Agarwal-led Hindustan Zinc will sell 6.70 crore equity shares through ‘offer for sale’ to raise about ₹4,600 crore.
Initially, the company will sell 3.35 crore equity shares (0.79 per cent of the paid-up equity share capital) at a floor price of ₹685 a share on Thursday.
On oversubscription, the company will offload another 3.35 crore equity shares leading to overall stake sale of 1.59 per cent.
The company will raise ₹4,600 crore through the ‘offer for sale’ to deleverage the balance sheet of the parent Vedanta and optimisation of the capital structure of the company.
Bidding for non-retail investors will open on January 28, while retail investors and non-retail bidders carrying forward unallotted bids can participate on January 29.
Allocation for non-retail investors will follow price priority, while retail investors will get shares at the cut-off price. Mutual funds and insurance companies have a minimum 25 per cent allocation in the non-retail category, and retail investors are guaranteed at least 10 per cent of the offer.
Shares of Hindustan Zinc have rallied 60 per cent in the last two months, corresponding with a record rally in silver prices in the global markets. The stock is the only listed silver play in India.
Shares of Hindustan Zinc were up 4 per cent at ₹727 on Tuesday.