Description

Vedanta Limited announces OFS of up to 3.35 crore equity shares (0.79% stake) of Hindustan Zinc Limited on January 28-29, 2026, with an option to sell additional 1.1 crore shares.

Summary

Vedanta Limited, the promoter of Hindustan Zinc Limited, has issued a notice for an Offer for Sale (OFS) of equity shares through the stock exchange mechanism. The Seller proposes to sell up to 3,35,00,000 equity shares (0.79% of total issued and paid-up equity share capital) with an option to additionally sell up to 1,10,00,000 equity shares (0.79% of total issued and paid-up equity share capital). The OFS is structured in accordance with SEBI OFS Circulars and Stock Exchange operational guidelines.

Key Points

  • Base Offer Size: Up to 3,35,00,000 equity shares (0.79% stake) of Hindustan Zinc Limited
  • Additional Option: Up to 1,10,00,000 equity shares (0.79% stake)
  • Face Value: ₹2 per equity share
  • Seller: Vedanta Limited (Promoter)
  • Method: Stock exchange mechanism as per SEBI OFS framework
  • Regulatory Framework: Conducted under SEBI Master Circular SEBI/HO/MRD-PoD2/CIR/P/2024/00181 dated December 30, 2024
  • Stock Exchanges: BSE Limited and National Stock Exchange of India Limited

Regulatory Changes

The OFS is conducted under the comprehensive framework on Offer for Sale of Shares through Stock Exchange Mechanism as notified by SEBI, including:

  • Master circular for stock exchanges (SEBI/HO/MRD-PoD2/CIR/P/2024/00181 dated December 30, 2024)
  • Framework for OFS to Employees (SEBI/HO/MRD/MRD-PoD-3/P/CIR/2024/6 dated January 23, 2024)
  • Modification in Framework for OFS to Employees (SEBI/HO/MRD/MRD-PoD-3/P/CIR/2024/82 dated June 14, 2024)
  • BSE Revised Operational Guidelines (Notice 20240701-19 dated July 1, 2024)
  • NSE Revised Operating Guidelines (Circular 93/2024 dated July 12, 2024)

Compliance Requirements

  • Notice issued to BSE Limited and National Stock Exchange of India Limited as per regulatory requirements
  • Compliance with SEBI OFS Circulars and Stock Exchange operational guidelines
  • Adherence to disclosure norms for offer for sale transactions
  • Subject to limited exceptions regarding release and distribution in United States and other restricted jurisdictions

Important Dates

  • Notice Date: January 27, 2026
  • T Day (Non-Retail Investors only): January 28, 2026
  • T+1 Day (Retail Investors and carry-forward bids): January 29, 2026

Impact Assessment

Market Impact: The OFS involves a substantial stake sale by promoter Vedanta Limited, which may lead to increased trading volumes and potential price volatility in Hindustan Zinc Limited shares during the offer period.

Ownership Structure: Post-OFS, Vedanta Limited’s promoter holding in Hindustan Zinc Limited will reduce by up to 1.58% (if greenshoe option is fully exercised), which may affect market perception of promoter commitment.

Liquidity: The OFS will provide institutional and retail investors an opportunity to acquire shares through the stock exchange mechanism, potentially improving free float and liquidity.

Investor Categories: The two-day structure allows non-retail investors to bid on T day with retail investors and carry-forward bids on T+1 day, ensuring broader participation across investor segments.

Impact Justification

Major OFS by promoter Vedanta Limited involving significant stake sale in Hindustan Zinc Limited through stock exchange mechanism, likely to impact stock price and trading volumes.