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Vedanta to Sell 1.59% Stake in Hindustan Zinc via Offer for Sale (OFS)
Vedanta Limited's Committee of Directors has approved the sale of up to 6,70,00,000 equity shares of its subsidiary, Hindustan Zinc Limited (HZL). This divestment represents a 1.59% stake in HZL and will be executed through the Offer for Sale (OFS) mechanism on the stock exchanges. The move is strategically aimed at raising capital, likely to support Vedanta's ongoing deleveraging efforts and debt management. Investors should note that this follows previous stake sales as the parent company continues to optimize its balance sheet.
Key Highlights
Sale of up to 6,70,00,000 equity shares of Hindustan Zinc Limited (HZL)
Divestment represents 1.59% of HZL's total issued and paid-up equity capital
Transaction to be conducted via the Offer for Sale (OFS) stock exchange mechanism
Approval granted by the Committee of Directors on January 27, 2026
Proceeds likely intended for debt reduction and improving Vedanta's liquidity
💼 Action for Investors
Vedanta shareholders should view this as a positive step for liquidity and debt reduction, while HZL investors should prepare for short-term price volatility due to the increased share supply.
Vedanta to Sell 1.59% Stake in Hindustan Zinc via Offer for Sale
Vedanta Limited has approved the divestment of up to 6,70,00,000 equity shares in its subsidiary, Hindustan Zinc Limited (HZL). This transaction represents a 1.59% stake in HZL and will be conducted through the Offer for Sale (OFS) mechanism. The sale is a strategic move by Vedanta, likely intended to generate liquidity for debt repayment or other corporate purposes. Investors should track the floor price of the OFS and the subsequent impact on Vedanta's consolidated debt-to-equity ratio.
Key Highlights
Divestment of 6.7 crore equity shares of Hindustan Zinc Limited (HZL)
Stake sale constitutes 1.59% of HZL's total paid-up equity capital
Execution via the stock exchange Offer for Sale (OFS) mechanism
Board committee approval granted on January 27, 2026
💼 Action for Investors
Monitor the OFS floor price and the impact on Vedanta's cash reserves for debt servicing. HZL shareholders should prepare for potential short-term price pressure due to the increased supply of equity.