Shares of Hindustan Zinc Ltd. dropped to their lowest level in over three months on Friday after Vedanta Ltd. plans to sell a 3.31% stake in the company through an offer-for-sale.

Vedanta will sell up to 13.37 crore shares of its subsidiary Hindustan Zinc via offer sale at a floor price of Rs 486 apiece, the companies said in an exchange filing on Wednesday.

The offer will be open on Friday and Monday. Non-retail investors will place their bids on Friday, and retail investors can place their bids on Monday, Hindustan Zinc said.

As of June 30, Vedanta owns 64.92% of equity in Hindustan Zinc, according to data on the National Stock Exchange’s website. Hindustan Zinc has a total of 4,22.53 crore of outstanding shares.

Vedanta Approves Increase In Stake Sale Of Hindustan Zinc Via OFS

Shares of Hindustan Zinc declined 7.81% to Rs 423.25, the lowest level since May 13. It pared losses to trade 5.76% lower at Rs 538.80 as of 10:09 a.m., compared to 0.63% advance in the NSE Nifty 50 index.

The stock gained 71.48% in the last 12 months and 69.16% on year to date basis. Total traded volume so far in the day stood at 14 times its 30-day average. The relative strength index was at 29.42, which implied the stock is oversold.

Out of 12 analysts tracking the company, one maintains a ‘buy’ rating, two recommend a ‘hold,’ and nine suggest a ‘sell’, according to Bloomberg data. The average 12-month consensus price target implies a downside of 27.0%.

Vedanta Ltd. rose 2.39% to Rs 430.25, the highest level since Aug 14. It was trading 1.11% higher at Rs 424.80 as of 10:13 a.m., compared to 0.61% advance in the NSE Nifty 50 index.

The stock gained 79.47% in 12 moths and 64.2% on year to date basis. Total traded volume so far in the day stood at X.X times its 30-day average. The relative strength index was at 43.97.

Out of 13 analysts tracking the company, seven maintain a ‘buy’ rating, five recommend a ‘hold,’ and one suggests a ‘sell’, according to Bloomberg data. The average 12-month consensus price target implies an upside of 11.8%.

Stock Market Live: Nifty, Sensex Off Highs As HDFC Life, SBI Life Weigh. Read more on Markets by NDTV Profit.Vedanta will sell up to 13.37 crore shares of its subsidiary Hindustan Zinc via offer sale at a floor price of Rs 486 apiece in an offer for sale.  Read MoreMarkets, Business, Buzzing Stocks, Notifications 

​NDTV Profit