Hindustan Zinc OFS - Here's how retail investors can subscribe to it

Hindustan Zinc's OFS will increase the supply of stock in the markets, thereby increasing the stock's free float. Promoters Vedanta, and the Government continue to hold majority stake in the company. By Hormaz Fatakia The Offer For Sale (OFS) of Hindustan Zinc Ltd. opens for subscription for retail investors on Thursday, January 29. The OFS, which was open for non-retail investors on Wednesday, was fully subscribed, with an indicative price of ₹691.15, higher than the floor price of ₹685, and lower than Hindustan Zinc's closing price the previous day. Hindustan Zinc's parent company Vedanta Ltd. has launched this Offer For Sale (OFS), through which it plans on raising up to ₹4,500 crore. The base issue size was for 0.79% of the total equity and a green shoe option of another 0.59% stake. Here's how retail investors can subscribe to the OFS: Open your trading account and navigate to the "Corporate Actions" or "OFS" sections. Review the floor price, bid quantity, price, and other aspects as specified on the interface. Participants must know that the bid price entered should be above the floor price of the OFS. Investors must also ensure that sufficient funds are available in their accounts while bidding for the OFS, as the said amount will be blocked by the broker. In case the bidding is successful, the shares will be credited into your demat accounts within T+1 days. In case of a rejection, the said funds will be refunded back to the investors' account. Retail investors are generally classified as those whose authorized share capital is up to ₹2 lakh or lower. Hindustan Zinc has only 7.7 lakh small retail investors, or those with authorized share capital of up to ₹2 lakh, who hold a 2.96% stake in the Vedanta unit. Hindustan Zinc is known as a stock for its low free float, as majority of the stake is with promoters Vedanta, the Government of India, and other fund houses. Shares of Hindustan Zinc fell 3.2% on Wednesday to ₹703.9. The stock has gained nearly 60% in the last two months and are closing in on their record high of over ₹800.