Government to sell 2.5% stake in Hindustan Zinc for $634 million

Hindustan Zinc stake sale: Miner Hindustan Zinc said on Tuesday government, its largest minority shareholder will sell a total 2.5 per cent stake in company and valued sale at Rs 53.34 billion (about $634 million).

government, which currently holds a 29.54 per cent stake in company, is looking to sell 105.6 million shares at a floor price of 505 rupees apiece under offer for sale.

floor price is at a nearly 10 per cent discount to Tuesday's closing price of Rs 559.65.

sale is scheduled for Nov. 6 and Nov. 7, miner said.

Last month, Reuters reported that company is discussing possibility of splitting into two. government h rejected a similar proposal by Hindustan Zinc in March, saying it was not convinced that such a move would boost shareholder value.

stake sale comes months after majority shareholder in company, Vedanta shived off a 3.3 per cent stake in firm for $950 million.