Institutional Investors placed bids totaling about Rs 3,400 crore on Wednesday, overspending the government's offer-for-sale of over 4.75 crore Hindustan Zinc Ltd (HZL) shares.

Bids for more than 6.69 crore shares, or 1.41 times the total of 4.75 crore shares available for institutional purchasers, were received on the first day of the two-day OFS.

Retail investors will be able to purchase the offering on Thursday

Today, non-retail investors responded enthusiastically to the offer for sale in Hindustan Zinc Limited (HZL). "The government has chosen to implement the green shoe option," Tuhin Kanta Pandey, secretary of the Department of Investment and Public Asset Management (DIPAM) stated on X.

The largest minority shareholder in the Vedanta Group company is the government, which owns 29.54 percent of HZL.

The government is offering a greenshoe option to hold onto additional subscriptions of a comparable amount while selling above 5.28 crore shares, or 1.25 percent of the total, through the two-day OFS.

In contrast to the more than 4.75 crore shares that were allocated for them, institutional investors placed bids on Wednesday for approximately 6.69 crore HZL shares at an indicative price of Rs 505.51 per share as of 1530 hours.

The HZL share sale will bring in more than Rs 5,000 crore for the exchequer if the 2.5% stake is fully subscribed for.

On the BSE, HZL's shares ended the day 8.28% lower at Rs 513.15 each.

The government's disinvestment fund would be topped out by the revenues from the sale of the HZL stake. Through the sale of minority stakes in Central Public Sector Enterprises (CPSEs), the government has raised Rs 5,176 crore so far this fiscal year.