HZL OFS Subscribed 0.39% in Early Trade

New Delhi, Nov 6 (PTI) The government's offer for sale (OFS) for up to 2.5 per cent stake in Hindustan Zinc got subscribed 0.39 per cent of the base issue size in the early morning trade on Wednesday.

Within an hour of opening of the OFS, institutional investors put in bids for 1.88 lakh shares at an indicative price of Rs 506.61 a share as of 1030 hours, against more than 4.75 crore shares reserved for them.

Bidding will continue till the close of market hours or 1530 hours.

The indicative price is higher than the floor price of Rs 505 apiece set by the government. If the 2.5 per cent stake on offer is fully subscribed, it will garner over Rs 5,000 crore to the exchequer.

Through the two-day OFS, the government is selling over 5.28 crore shares, or 1.25 per cent stake, with a greenshoe option to retain additional subscription of a similar amount.

Retail investors will get to bid in the OFS on Thursday.

The floor price is at a discount of 9.7 per cent over Tuesday's closing price of Rs 559.45 per piece.

On Wednesday, shares of HZL were trading at Rs 516.65, down 7.65 per cent over Tuesday's closing price on the BSE.