NEW DELHI: Vedanta Ltd has fixed the floor price for offer for sale (OFS) of shares of Hindustan Zinc Ltd (HZL) at Rs 486 per share, a discount of 15% to the current market price of Rs 576.

The company has increased the OFS size to 14 crore shares (or 3.31% of the total outstanding shares) from the previously announced 11 crore shares (2.6%). Vedanta Ltd, which holds 64.92% in HZL, would raise a minimum of Rs 6,804 crore (at the floor price of Rs 486) through the OFS. The OFS will open for subscription on August 16, when retail investors can submit their bids. The offer will close on August 19, 2024, the date retail investors can submit their applications.

Hindustan Zinc recently reported its first rise in profits after six quarters of decline. Net profit rose 19.4% to Rs 2,345 crore in the April-June quarter. The company’s zinc sales rose 14% in the first quarter, making it the leading business segment.

Recently, Vedanta Limited received approval from 75% of its secured creditors to proceed with the proposed demerger. The demerger is planned to be a simple vertical split, with shareholders receiving one share in each of the five newly listed companies for each Vedanta share.

The company stated that Vedanta has a history of generating strong returns to its shareholders. As of June 2024, the total return to shareholders over a five-year period was 276%, while the average cumulative dividend yield over five years was 65%, providing value to shareholders.