Description

Vedanta Limited (Promoter) proposes to sell up to 3.35 crore equity shares (0.79% stake) of Hindustan Zinc Limited through stock exchange OFS mechanism on January 28-29, 2026, with option to sell additional 1.1 crore shares.

Summary

Vedanta Limited, the promoter of Hindustan Zinc Limited, has announced an Offer for Sale (OFS) of equity shares through the stock exchange mechanism. The base offer size is up to 3,35,00,000 equity shares (0.79% of total issued and paid-up equity share capital) with a face value of ₹2 each. Additionally, there is a greenshoe option to sell up to 1,10,00,000 additional equity shares (0.79% of capital). The OFS will be conducted in accordance with SEBI OFS Circulars and Stock Exchange operational guidelines.

Key Points

  • Seller/Promoter: Vedanta Limited
  • Company: Hindustan Zinc Limited
  • Base Offer Size: Up to 3,35,00,000 equity shares (0.79% of total equity capital)
  • Greenshoe Option: Up to 1,10,00,000 additional equity shares (0.79% of total equity capital)
  • Total Potential Sale: Up to 4,45,00,000 equity shares (1.58% of total equity capital)
  • Face Value: ₹2 per equity share
  • Mechanism: Stock exchange OFS mechanism on BSE and NSE
  • Regulatory Framework: Conducted under SEBI Master Circular SEBI/HO/MRD-PoD2/CIR/P/2024/00181 dated December 30, 2024, and related circulars

Regulatory Changes

This OFS is being conducted under the revised comprehensive framework on Offer for Sale through Stock Exchange Mechanism, as per:

  • SEBI Master Circular for Stock Exchanges (Reference: SEBI/HO/MRD-PoD2/CIR/P/2024/00181 dated December 30, 2024)
  • Framework for OFS to Employees (Reference: SEBI/HO/MRD/MRD-PoD-3/P/CIR/2024/6 dated January 23, 2024)
  • Modification in OFS Framework (Reference: 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

  • OFS will be conducted in accordance with SEBI OFS Circulars and Stock Exchange operational guidelines
  • Subject to limited exceptions, notice not for release in United States or other restricted jurisdictions where prohibited by applicable law
  • Notice issued to both BSE Limited and National Stock Exchange of India Limited
  • Compliance with Regulation S under the U.S. Securities Act of 1933, as amended

Important Dates

  • Notice Date: January 27, 2026
  • T Day (Non-Retail Investors Only): January 28, 2026
  • T+1 Day (Retail Investors + Non-Retail with unallotted bids): January 29, 2026

Impact Assessment

Market Impact: This is a significant promoter stake sale in Hindustan Zinc Limited, one of India’s largest zinc-lead-silver producers. The potential divestment of up to 1.58% of equity capital (including greenshoe) may create supply pressure on the stock price.

Liquidity Impact: The OFS mechanism provides an orderly method for large block sales, with separate days for retail and non-retail investors, helping to manage market impact and ensure fair price discovery.

Investor Opportunity: Retail investors will have dedicated access on T+1 day, along with non-retail investors carrying forward unallotted bids from T day.

Promoter Holding Impact: Successful completion of the full OFS (including greenshoe) would reduce Vedanta Limited’s promoter holding in Hindustan Zinc Limited by 1.58%.

Regulatory Compliance: The OFS is structured in compliance with updated SEBI framework and stock exchange guidelines, ensuring transparency and investor protection.

Impact Justification

Large promoter stake sale of 0.79% (up to 1.58% with greenshoe) in a major listed company through OFS mechanism, likely to impact stock price and liquidity significantly.