Vedanta Ltd OFS Of Rs 4,500 Cr Shares In Hindustan Zinc Opens; Floor Price, Subscription, Dates, Eligibility

Vedanta Ltd, a metal giant, has announced an offer for sale (OFS) in its subsidiary Hindustan Zinc before its mega 1:5 demerger. As much as Rs 4,500 crore worth of shares will be offloaded in Hindustan Zinc. Accordingly, both Anil Agarwal-backed heavyweight stocks will be in focus on Wednesday, January 28.

It needs to be noted that the subscription is applicable to investors, especially retail individuals, on different dates compared to high net worth and qualified institutional buyers.

If a retail investor is looking to be eligible for Hindustan Zinc shares, here's what they need to know.

In its regulatory filing, Vedanta said that the board of directors has approved "the sale of to 67,000,000 equity shares of Hindustan Zinc Limited ("HZL"), representing 1.59% of the issued and paid-up equity share capital of HZL, by way of an offer for sale through the stock exchange mechanism."

Vedanta-Hindustan Zinc Offer For Sale Size:

Vedanta's OFS has firstly proposed to sell up to 33,500,000 equity shares, which represents 0.79% in Hindustan Zinc, on January 28. This is the base offer.

However, Vedanta will also keep the option of an additional stake sale of up to 33,500,000 equity shares, or 0.79%, in HZL on January 29. This is called the oversubscription option.

In total, Vedanta has proposed to offload 67,000,000 equity shares, which represents a 1.59% stake in Hindustan Zinc.

In value terms, the offer is approximately around Rs 4,500 crore.

Vedanta-Hindustan Zinc Offer for Sale Date:

The OFS will open for investors from 9:15 am to 3:30 pm on January 28, 2026. The last date for bidding is fixed on January 29, 2026.

Vedanta-Hindustan Zinc Offer For Sale: Floor Price

The floor price for the OFS is set at Rs 685, which is a 5.7% discount from the current market price of Hindustan Zinc at Rs 726.60 apiece as of January 27, 2026.

HZL shares may fall on January 28 due to the OFS. In the previous session, HZL shares touched a new all-time high of Rs 731.10 apiece.

Currently, the zinc players' market cap is at Rs 3,07,011.68 crore, surpassing Vedanta's market cap which is around Rs 2,75,936.53 crore.

Vedanta-Hindustan Zinc Offer For Sale: January 28

On January 28, only non-retail investors can bid. In its regulatory filing, Hindustan Zinc said, "Only non-retail investors shall be allowed to place their bids on T day, i.e., January 28, 2026. While placing their bids, non-retail investors may indicate their willingness to carry forward their unallotted bids to T + 1 day for allocation to them in the unsubscribed portion of the retail category."

What this means is that non-retail investors have the option to carry forward their unallotted bids from January 28 to January 29, provided that they express their willingness to carry forward their unallotted bids the next day. These non-retail investors can revise their bids on January 29, as per the OFS guidelines.

The allocation of unsubscribed shares of the retail category to non-retail investors will be at a price equal to the cut-off price or higher. In the case of the unsubscribed portion of the non-retail category after allotment, they will be eligible for allocation to retail bidders.

Notably, a minimum of 25% of the OFS is reserved for mutual funds and insurance companies. In the event of any undersubscription by mutual funds and insurance companies, the unsubscribed portion shall be available to other bidders in the non-retail category.

Non-retail investors are those who are bidding in the OFS above Rs 2 lakh. These can be companies, mutual funds, insurers, financial institutions, and high-net-worth investors.

Vedanta - Hindustan Zinc OFS: January 29

On January 29, only retail investors and those non-retail investors who decided to carry forward their unallotted bids will be eligible to subscribe under the said OFS.

HZL in its filing said that retail investors shall mean an individual investor who places bids for offered shares at a total value of not more than Rs 2 lakh.

A minimum of 10% of the OFS is reserved for the allocation to retail investors. No discount is being offered to retail investors.

Any unsubscribed portion of the Retail Category, after allotment to Retail Investors, shall be eligible for allocation to non-Retail Investors who have chosen to carry forward their unallotted bids on T day to T + 1 day.

Vedanta and HZL shares will be in focus accordingly.