Hindustan Zinc shares fall to OFS floor after fourth day of losses
This means that the stock has lost over 20% in the last four trading sessions.
Monday’s decline has brought the stock down to almost the floor price of ₹486.
Vedanta, the promoter of Hindustan Zinc, said on Friday that it would exercise the greenshoe option in the offer for sale, which would see it now sell 3.17% of its stake, compared to the 2.6% originally planned.
However, it must be noted that Hindustan Zinc is a stock with very low free float as 64.92% of the shares are held by promoter Vedanta, while almost 30% of the shares are held by the government and another 2.5% by the Life Insurance Corporation of India.
As a result, the reaction of the shares of such a company will always be at the opposite end of the spectrum, whether it is gains or losses. Vedanta’s OFS will result in a marginal increase in the free float for Hindustan Zinc.
With this four-day decline, shares of Hindustan Zinc have corrected by 40% from their record high of ₹807.7 million hit on May 22 this year.
Hindustan Zinc’s offer for sale will be opened for subscription by retail investors today.
Shares of Hindustan Zinc are currently trading 5.2% lower at ₹492.8 in early trade. At its peak, the stock had risen nearly 140% in 2024, but after this correction, gains for the year have now shrunk to 54%.