Hindustan Zinc OFS: All key details you need to know; Vedanta to offload 1.59% stake
Shares of Hindustan Zinc are in focus as parent company Vedanta has launched an offer for sale to offload up to 1.59 per cent of its total holdings in the company.
- Jan 28, 2026,
- Updated Jan 28, 2026 9:51 AM IST
Shares of Hindustan Zinc Ltd are in focus as parent company Vedanta Ltd has launched an offer for sale (OFS) to offload up to 1.59 per cent of its total holdings in the company. The planned sale will take place via the BSE and NSE, as per the corporate filing, and is designed to boost the stock’s free float in the market.
According to details, Vedanta will sell up to 3.35 crore shares, representing 0.79 per cent of Hindustan Zinc’s equity as the base offer, alongside an additional 3.35 crore shares as part of a Greenshoe option, taking the total OFS size to 1.59 per cent. Non-retail investors can participate on January 28, 2026, while retail investors can participate on January 29.
At the end of the December 2025 quarter, Vedanta’s stake in Hindustan Zinc stood at 61.8 per cent. The Government of India holds 27.92 per cent, with mutual funds and foreign portfolio investors (FPIs) owning 1.07 per cent and 1.54 per cent, respectively. Life Insurance Corporation of India, via its ULIP Growth Fund, has a 3.31per cent stake, while 7.7 lakh small retail investors account for only 2.96 per cent.
The OFS is expected to increase the available free float in Hindustan Zinc, which currently remains limited despite the company’s recent rally. Market participants have pointed out that the small free float has restricted retail investor participation and limited overall liquidity in the counter.
Hindustan Zinc shares have surged around 60 per cent over the past two months, reaching record highs. On Tuesday, the stock closed 4 per cent higher at Rs 726.5, bringing its market capitalisation to Rs 3.07 lakh crore. The stock has already gained 19 per cent in January, marking the best monthly start since 2017.
The recent rally in Hindustan Zinc has coincided with a sharp move in global silver prices, reinforcing its position as India’s most valued metal company. At current market prices, Vedanta’s 61.8 per cent stake is valued at approximately Rs 1.9 lakh crore, underlining the strategic significance of the holding.
Hindustan Zinc Q3 results
For the December 2025 quarter, Hindustan Zinc reported a 47 per cent year-on-year (YoY) increase in net profit to Rs 3,879 crore. EBITDA rose by 34.7 per cent YoY to Rs 6,005 crore, and revenue from operations climbed 27.5 per cent YoY to Rs 10,922 crore, with margins expanding to 55 per cent.
Operationally, the company achieved record third-quarter mined metal production of 276 kilo tonnes and refined metal production of 270 kilo tonnes. Silver output increased by 10 per cent sequentially, contributing 44 per cent to profits in the quarter, reflecting Hindustan Zinc’s robust production and earnings momentum.
Hindustan Zinc Target prices
JM Financial remains positive on Hindustan given its presence in the lower end of the global cost curve facilitated by high grade captive mines sufficient to meet requirements for decades, 100 per cent captive power plants, sizeable scale, diversified revenue stream with increasing contribution from silver sales.
"With LME Zinc and Silver prices sustaining at record levels, we revise our earnings upwards by 10 per cent/22 per cent /29 per cent for FY26E/FY27E/FY28E leading to a revised target price of Rs 770 (from Rs 600) at 18 times P/E multiple for FY28," it added with a 'buy' rating" it added.
Silver has experienced sharp surge through 2025, driven by a combination of elevated industrial demand and physical market stress as inventories fell over the period. Silver’s dual role as a precious and industrial metal has supported the rally with growth in photovoltaic demand, electronics, and EV components, said Systematix Institutional Equites.
"Management expects silver deliveries to reach 750 tons annually by FY28, with incremental volumes resulting from full stabilization of the fumer plant and silver recovery from jarosite hot acid leaching plant. We estimate 640tons/709tons/744tons silver volumes in FY26/FY27/FY28 and retain 'buy' rating with a SOTP-based target price of Rs 755," it added with a 'buy' tag.
Shares of Hindustan Zinc Ltd are in focus as parent company Vedanta Ltd has launched an offer for sale (OFS) to offload up to 1.59 per cent of its total holdings in the company. The planned sale will take place via the BSE and NSE, as per the corporate filing, and is designed to boost the stock’s free float in the market.
According to details, Vedanta will sell up to 3.35 crore shares, representing 0.79 per cent of Hindustan Zinc’s equity as the base offer, alongside an additional 3.35 crore shares as part of a Greenshoe option, taking the total OFS size to 1.59 per cent. Non-retail investors can participate on January 28, 2026, while retail investors can participate on January 29.
At the end of the December 2025 quarter, Vedanta’s stake in Hindustan Zinc stood at 61.8 per cent. The Government of India holds 27.92 per cent, with mutual funds and foreign portfolio investors (FPIs) owning 1.07 per cent and 1.54 per cent, respectively. Life Insurance Corporation of India, via its ULIP Growth Fund, has a 3.31per cent stake, while 7.7 lakh small retail investors account for only 2.96 per cent.
The OFS is expected to increase the available free float in Hindustan Zinc, which currently remains limited despite the company’s recent rally. Market participants have pointed out that the small free float has restricted retail investor participation and limited overall liquidity in the counter.
Hindustan Zinc shares have surged around 60 per cent over the past two months, reaching record highs. On Tuesday, the stock closed 4 per cent higher at Rs 726.5, bringing its market capitalisation to Rs 3.07 lakh crore. The stock has already gained 19 per cent in January, marking the best monthly start since 2017.
The recent rally in Hindustan Zinc has coincided with a sharp move in global silver prices, reinforcing its position as India’s most valued metal company. At current market prices, Vedanta’s 61.8 per cent stake is valued at approximately Rs 1.9 lakh crore, underlining the strategic significance of the holding.
Hindustan Zinc Q3 results
For the December 2025 quarter, Hindustan Zinc reported a 47 per cent year-on-year (YoY) increase in net profit to Rs 3,879 crore. EBITDA rose by 34.7 per cent YoY to Rs 6,005 crore, and revenue from operations climbed 27.5 per cent YoY to Rs 10,922 crore, with margins expanding to 55 per cent.
Operationally, the company achieved record third-quarter mined metal production of 276 kilo tonnes and refined metal production of 270 kilo tonnes. Silver output increased by 10 per cent sequentially, contributing 44 per cent to profits in the quarter, reflecting Hindustan Zinc’s robust production and earnings momentum.
Hindustan Zinc Target prices
JM Financial remains positive on Hindustan given its presence in the lower end of the global cost curve facilitated by high grade captive mines sufficient to meet requirements for decades, 100 per cent captive power plants, sizeable scale, diversified revenue stream with increasing contribution from silver sales.
"With LME Zinc and Silver prices sustaining at record levels, we revise our earnings upwards by 10 per cent/22 per cent /29 per cent for FY26E/FY27E/FY28E leading to a revised target price of Rs 770 (from Rs 600) at 18 times P/E multiple for FY28," it added with a 'buy' rating" it added.
Silver has experienced sharp surge through 2025, driven by a combination of elevated industrial demand and physical market stress as inventories fell over the period. Silver’s dual role as a precious and industrial metal has supported the rally with growth in photovoltaic demand, electronics, and EV components, said Systematix Institutional Equites.
"Management expects silver deliveries to reach 750 tons annually by FY28, with incremental volumes resulting from full stabilization of the fumer plant and silver recovery from jarosite hot acid leaching plant. We estimate 640tons/709tons/744tons silver volumes in FY26/FY27/FY28 and retain 'buy' rating with a SOTP-based target price of Rs 755," it added with a 'buy' tag.