Miner Hindustan Zinc said on Tuesday the Indian government, its largest minority shareholder will sell a total 2.5% stake in the company and valued the sale at 53.34 billion rupees (about $634 million).
The Indian government, which currently holds a 29.54% stake in the company, is looking to sell 105.6 million shares at a floor price of 505 rupees apiece under the offer for sale.
The floor price is at a nearly 10% discount to Tuesday’s closing price of 559.65 rupees.
The sale is scheduled for Nov. 6 and Nov. 7, the miner said.
Last month, Reuters reported that the company is discussing the possibility of splitting into two. The government had rejected a similar proposal by Hindustan Zinc in March, saying it was not convinced that such a move would boost shareholder value.
The stake sale comes months after the majority shareholder in the company, Vedanta hived off a 3.3% stake in the firm for $950 million.
($1 = 84.0840 Indian rupees)
(Reporting by Manvi Pant in Bengaluru; Editing by Eileen Soreng)
