The government has announced to sale of its stake in Hindustan Zinc Limited (HZL). Under this, the government will sell a 2.5 percent stake at the price of Rs 505 per share, which can raise more than Rs 5,000 crore. This move is part of the government's disinvestment plan and can be a great opportunity for investors.

Minimum price Rs 505 per share

The government has proposed to sell Hindustan Zinc shares at a minimum price of Rs 505. This price is about 9.7 percent lower than the market closing price (Rs 559.45), giving investors a good discount.

This offer will run for two days. On the first day, i.e. Wednesday, bids will open for institutional investors (such as funds, banks, and other big companies). On the second day, Thursday, retail investors (i.e. common people) will also get a chance to buy shares.

Greenshoe option: Opportunity for more stake sales

The government has also kept a greenshoe option, which means that if more investors come forward, the government can sell an additional 1.25 percent stake. The advantage of this will be that if this offer is successful, the government can get more money, which will help it improve its budget.

The government will get an amount of more than Rs 5,000 crore

The government is expecting to raise around Rs 5,000 crore from this stake sale. The government can use this for its various schemes. This step is part of the government's disinvestment policy, which aims to reduce stake in public sector companies.

Why is this a good opportunity?

Hindustan Zinc is a major company and its shares usually give good returns. Now that the government has decided to sell them at a discount, investors have a chance to make good profits. Especially for those investors who are thinking of buying shares for the long term.

Overall, this is a great opportunity for investors, be it institutional or retail. Now it will depend on how well people take advantage of this opportunity.