Vedanta shares up 2%, Hindustan Zinc stock falls after OFS announcement

Shares of Vedanta gained as much as 2% to Rs 721 on the BSE, while Hindustan Zinc shares tumbled 3% to Rs 705 on Wednesday, January 28, following Vedanta’s announcement of a stake sale in HZL through an Offer for Sale (OFS).

On Tuesday, Vedanta’s board approved the sale of up to 1.59% stake in Hindustan Zinc, representing as many as 6.7 crore equity shares. The OFS has been priced at a floor price of Rs 685 per share.

The OFS will be conducted over two days, beginning on January 28 and closing on January 29, 2026. It will take place through a separate window on the stock exchanges between 9:15 am and 3:30 pm. The issue will open for non-retail investors on the first day, while retail investors and non-retail investors carrying forward unallotted bids can participate on the second day.


Vedanta proposes to sell up to 3.35 crore shares, accounting for 0.79% of Hindustan Zinc’s paid-up equity capital, to non-retail investors. An additional 0.79% stake may be offered through an oversubscription option, subject to the company’s decision. As of December 31, 2025, Vedanta held a 61.84% stake in Hindustan Zinc, equivalent to 261.28 crore equity shares.

Hindustan Zinc is one of India’s leading mining companies and is the world’s largest integrated zinc producer. The company also ranks among the major producers of lead and silver, strengthening its position in the global metals market.

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On the market front, Vedanta shares closed 3.12% higher at Rs 705.45 on the NSE on Tuesday, while Hindustan Zinc gained 4.08% to settle at Rs 727.20.

On the valuation front, Vedanta appears with a price-to-earnings (P/E) ratio of 22.27. The stock is trading at a price-to-sales (P/S) ratio of 1.19, indicating a relatively reasonable valuation relative to its revenue base. However, Vedanta commands a higher price-to-book (P/B) ratio of 4.98, suggesting the stock is trading at a significant premium to its book value.

From a technical perspective, momentum indicators suggest caution in the near term. Vedanta’s 14-day RSI stands at 81.7, placing the stock in the strongly overbought zone, while Hindustan Zinc’s RSI is at 71.0, also indicating an overbought condition. Such elevated RSI levels may signal a short-term pullback or consolidation.

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