Description

Vedanta Limited (promoter) announces offer for sale of up to 3.35 crore equity shares (0.79% stake) in Hindustan Zinc Limited through stock exchange mechanism on January 28-29, 2026.

Summary

Vedanta Limited, the promoter of Hindustan Zinc Limited, has announced an Offer for Sale (OFS) of up to 3,35,00,000 equity shares (0.79% of total issued and paid-up equity share capital) through the stock exchange mechanism. The OFS will be conducted on January 28, 2026 (T day) for non-Retail Investors and January 29, 2026 (T+1 day) for Retail Investors and non-Retail Investors carrying forward unallotted bids. An additional greenshoe option of up to 3,35,00,000 equity shares (0.79%) is available, bringing the total potential offer size to 1.58% of the company’s equity.

Key Points

  • Seller: Vedanta Limited (Promoter of Hindustan Zinc Limited)
  • Base Offer Size: 3,35,00,000 equity shares (0.79% stake)
  • Greenshoe Option: Up to 3,35,00,000 additional equity shares (0.79% stake)
  • Total Potential Offer: Up to 6,70,00,000 shares (1.58% stake)
  • Face Value: ₹2 per equity share
  • OFS conducted under SEBI OFS framework through stock exchange mechanism
  • Trading on BSE Limited and National Stock Exchange of India Limited

Regulatory Changes

The OFS is being conducted in accordance with:

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

Compliance Requirements

  • Promoter (Vedanta Limited) must comply with OFS Guidelines issued by SEBI and Stock Exchanges
  • Notice filed with BSE and NSE as per regulatory requirements
  • OFS subject to restrictions on release and distribution in United States and other jurisdictions as per applicable securities laws
  • Compliance with Regulation S under U.S. Securities Act of 1933 (as amended)

Important Dates

  • January 27, 2026: Notice issued to stock exchanges
  • January 28, 2026 (T day): OFS for non-Retail Investors only
  • January 29, 2026 (T+1 day): OFS for Retail Investors and non-Retail Investors with carry-forward bids

Impact Assessment

Market Impact: High - The OFS of up to 1.58% stake (including greenshoe) by the promoter in a major metal and mining company is significant and likely to create substantial trading volumes and potential price volatility in Hindustan Zinc shares.

Liquidity Impact: The offer provides an opportunity for institutional and retail investors to acquire shares through the stock exchange mechanism, potentially improving free float.

Investor Implications: Non-retail investors can participate on T day, while retail investors get their opportunity on T+1 day. Unallotted bids from non-retail investors can be carried forward to T+1 day.

Promoter Holdings: Post-OFS, Vedanta Limited’s stake in Hindustan Zinc will reduce, though it will continue to remain the promoter with significant holding.

Impact Justification

Large promoter stake sale of 0.79% (up to 1.58% with greenshoe) in major zinc producer through OFS mechanism, likely to impact stock price and liquidity