Hindustan Zinc's stock falls 8% after Govt reduces its ownership

As the government reduces its ownership at a steep discount through OFS, Hindustan Zinc's stock falls 8%. On November 6, Hindustan Zinc's stock fell more than 8% after the government stated it would sell off a 2.5 percent share in the firm through an offer-for-sale. 

At a floor price of Rs 505, the government's long-awaited proposal for an OFS to reduce its interest in Hind Zinc will be implemented, representing a steep reduction of about 10% from the previous closing level. Hindustan Zinc's stock was trading at Rs 517.10 on the NSE at 10.04 a.m. 

The government will sell 5.28 crore shares, or 1.25 percent of the stock, under the OFS, which went public today. There is a greenshoe option to raise the offer size by an additional 1.25 percent.

While the issue opened for non-retail investors today, retail investors will be able to place bids on November 7. The non-retail category will have an indicative pricing that is shown separately. Retail investors are allowed to bid up to Rs 2 lakh per share, with 10% of the offer size set aside for them.