The government's offer-for-sale for more than 4.75 crore HZL shares to institutional investors got over-subscribed before the close of market hours on Wednesday with institutional buyers putting in close to Rs 3,400-crore worth bids.
Institutional investors put in bids for over 6.69 crore shares, which is 1.4 times the 4.75 crore shares on offer for them.
The issue will open for retail investors on Thursday.
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.
Institutional investors on Wednesday put in bids for over 6.69 crore HZL shares at an indicative price of Rs 505.51 a share as of 1530 hours, against more than 4.75 crore shares reserved for them.
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If the 2.5 per cent stake on offer gets fully subscribed, the HZL stake sale will garner over Rs 5,000 crore to the exchequer.
Shares of HZL settled 8.28 per cent lower at Rs 513.15 apiece on the BSE.
The proceeds from the HZL stake sale would add up to the government's disinvestment kitty. So far this fiscal, the government has raised Rs 5,176 crore through minority stake sales in Central Public Sector Enterprises (CPSEs).
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