Hindustan Zinc OFS Opens for Retail Investors: Vedanta to Sell 1.59% Stake at ₹685

On 29 January 2026, the Offer for Sale (OFS) of Hindustan Zinc Ltd (HZL) opened for retail investors after strong demand from institutional and non‑retail participants. The OFS, led by promoter Vedanta Ltd, is designed to sell up to 1.59% stake in Hindustan Zinc, raising around ₹4,500 crore for the company. Retail investors now have the chance to bid for shares in one of India’s largest metal producers directly through the stock exchanges.

What is the Hindustan Zinc OFS? Key Dates and Floor Price

Vedanta approved the sale of up to 6.7 crore equity shares in Hindustan Zinc via a two‑day Offer for Sale. The OFS was open for non‑retail investors on 28 January 2026, and it opened for retail investors on 29 January 2026.

• Floor Price: ₹685 per share, this is the minimum price at which bids can be made.
• Offer Size: Up to 1.59% stake, with a base offer of 0.79% and the rest through a green‑shoe (oversubscription) option.
• Subscription Window:
  • Non‑retail investors: 28 January 2026 (T day)
  • Retail investors + unallotted non‑retail bids: 29 January 2026 (T+1 day)

The OFS is conducted through dedicated trading windows on the BSE and NSE, and bids must be placed above the floor price during market hours.

How Retail Investors Can Subscribe to the Hindustan Zinc OFS

For retail investors, participating in the OFS means bidding for shares above the floor price via a registered broker or trading platform during normal stock market hours. The key points to remember:

• Eligibility: Retail bids are typically for up to ₹2 lakh in total value.
• Bidding: Investors place bids specifying the number of shares and bid price (at or above the floor price).
• Allocation: If bids are successful, shares are credited to the investor’s Demat account after the bid closes.
• Refunds: If bids are not allocated, funds are returned to the investor.

This gives individual traders direct access to shares at a transparent pricing window, rather than buying later in the open market.

Market Response: Strong Demand and Share Price Movement

The initial non‑retail portion of the OFS was met with solid demand, with oversubscription reported over its base size, pointing to institutional confidence in Hindustan Zinc’s prospects.

In earlier trading around the announcement, Vedanta’s share price climbed, reflecting positive investor sentiment. In contrast, Hindustan Zinc’s stock faced short‑term pressure, trading slightly lower as the market absorbed the new supply from the OFS.

The stock’s movement shows how a high‑profile OFS can influence price dynamics even when the underlying business fundamentals remain strong.

Why This OFS Matters: Free Float, Liquidity and Investor Access

Hindustan Zinc has historically had a low free float, meaning only a small portion of shares is publicly traded. The promoter holds a major share, and the Government of India is the second‑largest shareholder, which limits how much stock is available for trading.

This OFS helps increase the publicly tradable portion of the company, potentially improving liquidity and giving retail investors more access to a high‑profile metal stock.

For many market participants, Hindustan Zinc is not just a zinc producer but also benefits from rising silver prices and strong quarterly earnings, making the stock attractive to a range of investors.

Current Status and What Investors Should Watch

• The retail subscription opened on 29 January 2026 and runs during market hours.
• Final allocation results will be known after the bidding window closes.
• Investors should consider their risk tolerance, market conditions and price trends before placing bids.