Hindustan Zinc's shares fell on Wednesday after the government announced an offer for sale to offload a 2.5% stake in the company. 

What Happened: The government will sell 5.28 crore shares, which make up 1.25% of the company, on Wednesday with a green show option to sell another 1.25% stake if the offer is oversubscribed. The floor price of the offer is set at ₹505 per share, a nearly 10% discount from the previous day's closing price.

The issue is open for non-retail investors today and will be open to retail investors on November 7, Thursday. 

As per September shareholding data, the Indian government holds a 29.54% stake in Hindustan Zinc while Vedanta has a 63.42% stake. 

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Previously Vedanta had sold up to 3.31% stake in the company in August through an OFS at a floor price of  ₹486. 

In its Q2 results, Hindustan Zinc reported a net profit of ₹2,327 crore which was a 34.6% increase from the previous year. The company's revenue gained 21.5% to ₹6,791 crore. 

Price Action: Shares of Hindustan Zinc fell 7.74% to ₹516.35 on Wednesday. 

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