In the issue which opened on Friday for non-retail investors, Vedanta aims to sell up to 5,14,40,329 equity shares, representing 1.22% of HZLβs stake.
Accordingly, the total offer size will be 1.51% of the total issued and paid-up equity share capital of which 63,60,590 equity shares i.e. 10% equity shares of the offer would be reserved for allocation to retail investors on T+1 day i.e. August 19, 2024, the company filing said.
The first day of the Offer for Sale saw strong demand, with non-retail investors bidding for 6.3 crore shares, as per regulatory filings. BSE data shows total bids of 6,36,05,891 shares against 5,14,40,329 shares offered, leading to an over-subscription of 1.23 times (137.39%). Bids were placed at Rs 494.54 per share, exceeding the floor price of Rs 486 per share.
“The Offer is being undertaken by the seller, inter-alia, to gain access to funds for inter alia growth and expansion purposes and for optimisation of the capital structure of the company,” Hindustan Zinc said.At the end of the June quarter, Vedanta owned a 64.92% stake in HZL, while the government had 29.54%. Vedanta plans to demerge its aluminium, oil and gas, power, base metals, and iron and steel businesses into separate listed entities. This demerger aims to reduce refinancing risks and reliance on dividends from Vedanta Resources Ltd.As of June 30, 2024, Vedantaβs net debt stood at Rs 61,324 crore.Last month, the mining conglomerate raised Rs 8,500 crore (over $1 billion) through a Qualified Institutions Placement (QIP) of 19.31 crore equity shares at an issue price of Rs 440 per share.
ET recently reported that HZL is expected to announce a special dividend of Rs 6,000 crore to its shareholders this month. Additionally, the National Company Law Tribunal (NCLT) approved the transfer of Rs 10,383 crore from the companyβs general reserves to retained earnings last month.
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