Vedanta, led by billionaire Anil Agarwal, managed to raise ₹3,100 crore from selling shares in its group company, Hindustan Zinc. The company initially aimed to raise up to ₹6,500 crore through an Offer for Sale (OFS), but later reduced the size of the sale.
Vedanta sold 63.6 million shares of Hindustan Zinc over a two-day period, ending on Monday. The company initially planned to sell a 3.17% stake, but ended up selling a 1.5% stake, reducing its holding in Hindustan Zinc from 64.92% as of June.
Hindustan Zinc’s share price has dropped by nearly 20% since last Monday, erasing over ₹50,000 crore in market value. Initially, Vedanta planned to sell 51.4 million shares, with an option to sell an additional 82.3 million shares if there was strong demand. After selling the 51.4 million shares on Friday, Vedanta reduced the extra shares available for sale to 12.2 million.
Despite the reduction, a Vedanta spokesperson said the OFS was still highly successful, with strong demand for the base offer size. The funds raised will be used for capital expenses. The floor price for the sale was set at ₹486 per share, and the shares closed at ₹495.70 on Monday, down 5% from the previous close. The final price for non-retail bidders was set at ₹487 per share.
Shares of Hindustan Zinc have dropped over 13% since Friday and had hit a lifetime high of ₹807.70 earlier this year. Shares of Vedanta also reached a lifetime high of ₹506.75 earlier this year.
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