Vedanta announces ₹4,500 crore OFS in Hindustan Zinc after stock rallies 60% in two months

Oil-to-metals conglomerate Vedanta Ltd on Tuesday (January 27) said its duly authorised Committee of Directors has approved the sale of up to 1.59% stake in Hindustan Zinc Ltd through an offer for sale route.

The proposed sale involves up to 6.7 crore equity shares of Hindustan Zinc Ltd, representing 1.59% of the issued and paid-up equity share capital of the company. Vedanta said the transaction will be executed through the stock exchange mechanism in line with applicable laws and the circulars issued by the Sebi.

At today’s closing price of ₹726.50 per share, the 6.7 crore shares proposed for sale through the OFS are valued at approximately ₹4,868 crore.

Shares of Hindustan Zinc have rallied 60% in the last two months, corresponding with a record rally in Silver prices in the global markets. The stock is the only listed Silver play in India. As of Tuesday's close, Hindustan Zinc has a market capitalisation of ₹3.07 lakh crore. Vedanta's 61.8% stake is valued at ₹1.89 lakh crore.

Also Read: Silver price rally makes Hindustan Zinc India's most valued metals stock

As of December 2025, Hindustan Zinc Ltd’s promoters, led by Vedanta Ltd, hold 61.84% of the equity. The Government of India holding 27.92% of the company’s shares as of September 2025. The remaining shares are held by public and institutional investors, accounting for approximately 31.93% of the equity.

Third Quarter Results

Net profit for the period grew by 47% from the same quarter last year to ₹3,879 crore from ₹2,647 crore. Profitability was also aided by a 33% increase in other income.

Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter stood at ₹6,005 crore, higher than the CNBC-TV18 poll of ₹5,614 crore. On a year-on-year basis, Hindustan Zinc's EBITDA increased by 34.7%.

Also Read: Hindustan Zinc ramps up silver output as global deficit persists

EBITDA margin for the quarter expanded by 300 basis points to 55% from 52% last year. The margin figure was also in-line with the CNBC-TV18 poll estimate of 54.9%.

Shares of Hindustan Zinc Ltd ended at ₹726.60, up by ₹27.75, or 3.97%, on the BSE.