Vedanta to sell 1.59% stake in Hindustan Zinc via OFS; sets floor price at ₹685
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Anil Agarwal-led mining conglomerate Vedanta Limited on Tuesday announced its plan to offload up to 6.7 crore equity shares, or a 1.59% stake, in its subsidiary Hindustan Zinc Limited (HZL) through an offer for sale (OFS). The move, aimed at deleveraging Vedanta’s balance sheet, comes amid a major rally in the metal sector.
OFS details and pricing
As per a regulatory filing, Vedanta confirmed that its board has approved the sale at a floor price of ₹685 per share. This price represents a discount of approximately 5.7% to HZL’s closing price of ₹726.50 on the NSE on Tuesday. At the floor price, the total stake sale is valued at approximately ₹4,590 crore.
The two-day subscription window will open on Wednesday, January 28, for non-retail investors. Retail investors and unallotted non-retail bidders will be able to participate on Thursday, January 29. The base offer size is 3.35 crore shares (0.79%), with an oversubscription option to sell an additional 3.35 crore shares.
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Hindustan Zinc’s valuation recently crossed the ₹3 lakh crore mark, making it India’s most valued metals company. The stock has surged over 60% in the last two months, driven by an exponential threefold jump in global silver prices, which recently crossed the $100 per troy ounce milestone. As a leading global silver producer, HZL has been a primary beneficiary of this commodity boom.
Strong Q3 earnings
The announcement follows a strong Q3 show by Hindustan Zinc. The company reported its highest-ever quarterly revenue of ₹10,980 crore, up 27% YoY in Q3 FY26. Consolidated net profit jumped 46% to ₹3,916 crore, supported by record mined metal production of 276 kilotonnes. Lower operational costs and higher metal realisations contributed to an EBITDA margin expansion of 300 basis points, reaching 55%.
Deleveraging strategy
For Vedanta Limited, the parent company, the proceeds will be utilised for strengthening the balance sheet and optimizing its capital structure. As of December 31, 2025, Vedanta held a 61.84% stake in HZL. Post-transaction, its holding is expected to reduce to approximately 60.25%, while the Government of India remains the second-largest shareholder with a 27.92% stake.