Vedanta to sell up to 1.6% stake in Hindustan Zinc via OFS to raise Rs 4,600 cr; floor price fixed at Rs 685/share

Vedanta to sell up to 1.6% stake in Hindustan Zinc via OFS

• Vedanta to sell 1.59 percent stake in Hindustan Zinc via offer for sale
• Hindustan Zinc Q3 profit rose 46.5 percent YoY to Rs 3,879 crore
• Hindustan Zinc shares surged over 61 percent in the past year

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Anil Agarwal-led Vedanta on January 27 announced that its committee of directors has approved the plan to sell up to 6.7 crore equity shares, representing 1.59 percent stake in Hindustan Zinc, through an offer for sale (OFS).

At today’s closing price of Rs 726.50 apiece, the said number of shares which will be up for sale as part of the OFS are worth nearly Rs 4,868 crore.

Vedanta to sell Hindustan Zinc shares via OFS:

The floor price for the OFS has been set at Rs 685 apiece, marking a 6 percent discount from today's closing price. At the said floor price, Vedanta will raise Rs 4,589.50 crore through the sale of the shares.

The OFS will open for non-retail investors on January 28, and for retail investors on January 29.

Vedanta has sold portions of its stake in Hindustan Zinc twice in the past two years to help shore up its balance sheet.

The announcement was made in the post-market hours of Tuesday. The stock will be kept under active watch when markets reopen tomorrow.

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.