New Delhi: According to a regulatory filing, non-retail investors showed a strong interest in the Offer for Sale of Hindustan Zinc Ltd, placing bids for 6.3 crore shares on the first day. As per BSE data, there were bids for 6,36,05,891 equity shares, exceeding the 5,14,40,329 shares offered by 1.22 pc. This resulted in an over-subscription of 1.23 times or 137.39 pc. Offers were made at Rs 494.54 per share, exceeding the minimum price of Rs 486 per share.
Vedanta, the promoter of Hindustan Zinc, had suggested selling a maximum of 5,14,40,329 equity shares of the company to non-retail investors on Friday, August 16. Vedanta announced that it would make available an extra 8,23,04,527 equity shares, which is equivalent to 1.95 pc of the equity capital, as an oversubscription choice for retail and non-retail investors on Monday, August 19th.
We want to inform the stock exchanges about our decision to activate the Oversubscription Option. Vedanta mentioned in the filing that they will be offering 1,21,65,562 equity shares (which is 0.29 pc of the total Equity Share capital) along with 5,14,40,329 equity shares.
The filing mentioned that the overall offer size will be a maximum of 6,36,05,891 equity shares, equivalent to 1.51 percent of the equity capital. It was mentioned that 63,60,590 equity shares, which is equivalent to 10 pc of the offer, would be set aside for allocation to Retail Investors. Vedanta previously announced it would sell a maximum of 14 crore shares or 3.31 pc ownership in Hindustan Zinc Ltd (HZL) via an offer for sale (OFS) from August 16-19 at a minimum price of Rs 486 per share. Sources say Vedanta will use the funds from the OFS to reduce its debt and invest in its growth initiatives. This, along with the Rs 8,500 crore qualified institutional placement, will decrease debt at both the company and group levels.
Vedanta held a majority stake of 64.92 pc in HZL at the conclusion of the June quarter, with the government owning 29.54 pc. Vedanta intends to separate its aluminum, oil and gas, power, base metals, and iron and steel businesses into individual listed companies through demerger. This split is intended to decrease the possibility of needing to refinance and depending on dividends from Vedanta Resources Ltd. By June 30, 2024, Vedanta had a net debt of Rs 61,324 crore.
In the quarter ending June 2024, Vedanta saw a 36.5 per cent increase in consolidated net profit, reaching Rs 3,606 crore. The company had recorded a net profit of Rs 2,640 crore in the previous year. Revenue increased to Rs 36,698 crore compared to Rs 34,279 crore. In the previous month, the mining conglomerate generated Rs 8,500 crore by issuing 19.31 crore equity shares at Rs 440 each through Qualified Institutions Placement (QIP).
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