Vedanta to Sell 1.6% Stake in Hindustan Zinc via OFS at Rs 685; Rs 4,600 Cr Fund Raise Plan

Vedanta Ltd (NSE: VEDL) has announced its plan to sell up to 1.6% stake in Hindustan Zinc Ltd through an Offer for Sale (OFS). The company aims to raise around Rs 4,600 crore from this stake sale.

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As per the official filing, the floor price for the OFS has been fixed at Rs 685 per share. The sale will be executed through the stock exchanges and is expected to attract strong interest from both institutional and retail investors.

Key Details of the OFS

• Seller: Vedanta Ltd
• Company: Hindustan Zinc Ltd
• Stake on Offer: Up to 1.6%
• Floor Price: Rs 685 per share
• Fund Raise Target: Around Rs 4,600 crore

Why Vedanta Is Selling Stake

The stake sale is part of Vedanta’s strategy to reduce debt and strengthen its balance sheet. Hindustan Zinc remains a strong and profitable company, and the OFS gives Vedanta an opportunity to unlock value.

What It Means for Investors

• The OFS price is close to market levels, making it attractive for long-term investors
• Increased public shareholding may improve liquidity in Hindustan Zinc shares
• Short-term price volatility can be expected around the OFS dates

Market experts advise investors to track demand during the OFS and overall market sentiment before making a decision.

Hindustan Zinc shareholding pattern:

According to data on Hindustan Zinc’s latest shareholding pattern, promoter Vedanta held 61.84 percent stake in the company, as on December 31 last year. After the stake sale, the holding company’s stake holding will likely reduce to 60.25 percent.

The central government meanwhile owned 27.92 percent stake in the silver producer at the end of the October-December quarter of the ongoing financial year 2026.

Hindustan Zinc share price:

Notably, Hindustan Zinc shares have seen a significant surge recently, mirroring the sharp jump in silver prices. The stock rose nearly 4 percent today, and more than 61 percent in the past one year. The Vedanta Group-company is the largest producer of silver in India, and produces refined silver with a minimum 99.9 percent purity.

The company’s market capitalisation currently stands at near Rs 3.07 lakh crore, while the stock has a P/E ratio of more than 25.

Hindustan Zinc Q3 Results:

Hindustan Zinc on January 19 reported a standalone net profit of Rs 3,879 crore for the October-December quarter of FY26. This marked a 46.5 percent year-on-year (YoY) rise from the Rs 2,647 crore net profit reported in the corresponding quarter of the previous financial year.

Revenue from operations meanwhile rose 27.5 percent YoY to Rs 10,922 crore during the quarter under review, as against a revenue of Rs 8,556 crore in the year-ago period.

EBITDA increased 34.7 percent YoY to Rs 6,055 crore, while EBITDA margin expanded to 55 percent from 52 percent a year ago, supported by lower zinc cost of production and improved operating leverage.

According to the company, Q3 marked its highest-ever quarterly revenue and profit, driven by higher metal production, stronger zinc and silver prices, and a sharp reduction in costs.

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Disclaimer

This article is intended for educational purposes only. The views and opinions expressed are those of individual analysts or brokerage firms and do not represent the views of GoldSilverReports.com. Investors are strongly advised to consult certified financial experts before making any investment or trading decisions.

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