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Bond Market News
Vedanta to Sell 1.59% Stake in Hindustan Zinc
January 29, 2026
Vedanta Limited has approved the sale of up to a 1.59% equity stake in its subsidiary, Hindustan Zinc Limited (HZL), via an offer for sale (OFS). The transaction, valued at ~INR 45.9bn ($500.8mn), is part of the conglomerate’s strategic initiative to strengthen its balance sheet and optimize its capital structure.
- Stake Details: The proposal includes a base offer of 0.79% with a “green shoe” option to sell an additional 0.79% in the event of oversubscription, bringing the total potential divestment to 1.59% (~ 67mn shares).
- Floor Price: The floor price has been set at INR 685/share, representing a discount of approximately 5.8% to 6% against the closing market price on the announcement date.
- Timeline: The OFS opened for non-retail investors yesterday on January 28, and it opens for retail investors today.
Vedanta indicated that the proceeds from this divestment will be utilized for deleveraging and enhancing the company’s financial health. This move aligns with its broader efforts to reduce debt obligations across the group. Following the transaction, Vedanta will remain the majority shareholder, retaining a dominant stake from its pre-sale holding of 61.84% (worth ~$20bn). The announcement occurs amidst a strong performance for HZL in the equity market, driven largely by a rally in silver prices and robust operational performance, the stock has rallied from INR 438 a year ago to INR 708, a rally of 61.6%
Vedanta’s dollar bonds traded stable. For instance its 11.25% 2031s was at 110.97, yielding 7.65%
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