A very good news is waiting for investors’. Yes, you’ve heard it right. Actually, the government has announced to sell its stake in Hindustan Zinc Limited (HZL). Under this, the government will sell a 2.5 percent stake at a price of Rs 505 per share, which can raise more than Rs 5,000 crore. The move is part of the government’s disinvestment plan and could be a great opportunity for investors.
Lowest price: Rs 505 per share
The government has proposed to sell Hindustan Zinc shares at a floor price of Rs 505. This price is about 9.7 percent lower than the time of market close (Rs 559.45), giving investors a handsome discount.
This offer will last for two days. On the first day, i.e., Wednesday, bidding will open for institutional investors (such as funds, banks, and other large companies). On the second day, on Thursday, retail investors (ie, common people) will also get a chance to buy shares.
Greenshoe Options: Even More Stake Sale Opportunity
The government has also kept the greenshoe option, which means that if more investors come in, the government can also sell an additional 1.25 percent stake. The advantage of this will be that if this offer is successful, then the government can get more money, so that it will be able to improve its budget.
The government will get more than Rs 5,000 crore
The government is expecting to raise around Rs 5,000 crore from this stake sale. It can be used by the government for its various schemes. The move is part of the government’s disinvestment policy, which aims to reduce stakes in public sector companies.
Hindustan Zinc is a major company, and its shares usually give good returns. Now that the government has decided to sell them at a discount, investors have a chance to make a good profit. Especially for investors who are thinking of buying shares for the long term.
Desclimer: For any financial investment anywhere on your own responsibility, Times Bull will not be responsible for it.
