Investor Briefing: Vedanta Ltd. Initiates ₹4,500 Cr Stake Sale in Hindustan Zinc

Executive Summary Vedanta Ltd. has approved the divestment of up to 1.59% equity stake in its subsidiary, Hindustan Zinc Ltd (HZL), via the Offer for Sale (OFS) mechanism. Scheduled for January 28–29, 2026, this strategic partial exit capitalizes on a significant value unlock in HZL shares, driven by a recent global rally in silver prices. The proceeds are primarily earmarked for deleveraging Vedanta’s balance sheet and optimizing the group's capital structure. Transaction Overview Instrument: Offer for Sale (OFS) via stock exchange mechanism. Total Offer Size: Up to 6.7 crore equity shares (1.59% of paid-up capital). Base Offer: 3.35 million shares (0.79%). Oversubscription Option: Additional 3.35 million shares (0.79%). Pricing: Floor Price: ₹685 per share. Market Context: This represents a discount of approximately 5.7% to the closing price of ₹726.60 on Jan 27, 2026. Estimated Deal Value: ~₹4,500 Crore (approx. $540 Million). Timeline & Allocation Non-Retail Investors: Bidding opens January 28, 2026 (Price priority basis). Retail Investors: Bidding opens January 29, 2026 (Cut-off price basis). Allocation Policy: Minimum 25% reserved for Mutual Funds/Insurance; Minimum 10% reserved for Retail. Strategic Rationale & Market Timing This OFS is a calculated move to monetize recent asset appreciation. HZL stock has rallied 60% over the last two months, effectively positioning itself as India's premier listed silver proxy amidst a persisting global silver deficit. The divestment allows Vedanta to capture this upside while retaining a controlling majority (holding ~61.8% prior to sale). Underlying Financial Strength (Q3 FY26) The offer is supported by robust Q3 fundamentals from Hindustan Zinc, reinforcing asset quality: Net Profit: ₹3,879 Cr (+47% YoY). EBITDA: ₹6,005 Cr (+34.7% YoY), surpassing analyst estimates of ₹5,614 Cr. Valuation: Current Market Cap stands at ₹3.07 Lakh Cr.