Hindustan Zinc stock drops more than 2% after company posted fall in Q3 net profit
In 2018, during the same period, the net profit was Rs 2,211 crore, the company said in a BSE filing.
The Centre has proposed to sell up to 2.5% stake in Hindustan Zinc through an offer for sale (OFS). The floor price for the same is fixed at Rs 505 a piece, which is nearly 10% discount to the current market price.
“Offer for Sale in Hindustan Zinc Limited (HZL) opens tomorrow for Non-Retail investors. Retail investors can bid on Thursday, 7th November. Government will divest 1.25% equity with an additional 1.25% as green shoe option,” Tuhin Kanta Pandey, Secretary, Department of Investment and Public Asset Management (DIPAM) said.
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Under the OFS, the government will sell about 5.28 crore shares or 1.25% of equity with additional oversubscription option of 1.25% equity.
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The offer will open for non-retail investors on November 6, which is the T day and they can indicate their willingness to carry forward their un-allocated bids for T+1 day, which is on November 7.
Hindustan Zinc is a subsidiary of Vedanta. It is one of the world’s largest integrated producers of zinc, lead, and silver.
Headquartered in Udaipur, the company operates across multiple mines and smelters, with a strong focus on sustainable mining practices, resource conservation, and maintaining its market-leading position in metal production.
The government had rejected a similar proposal by Hindustan Zinc in March, saying it was not convinced that such a move would boost shareholder value.
The stake sale comes months after the majority shareholder in the company, Vedanta hived off a 3.3% stake in the firm for $950 million.
In its September quarter, Hindustan Zinc reported a 35% jump in consolidated net profit at Rs 2,327 crore. Last year, it recorded Rs 1,729 crore.
The revenue from operations in the reported quarter stood at Rs 8,004 crore which was up 21% over Rs 6,619 crore posted by the company in the corresponding quarter of the previous financial year.
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