Hindustan Zinc Ltd (HZL) has probably caught your eye. The company has been in the spotlight, not just for its strong production numbers, but also because its parent company, Vedanta Ltd, has trimmed its stake in the firm.
On January 27, 2026, Anil Agarwal-led Vedanta Ltd announced plans to sell a small portion of its holding in Hindustan Zinc. While the initial plan was to sell up to 1.59%, Vedanta eventually offloaded a 1.13% stake, around 4.76 crore shares, through an Offer for Sale (OFS) conducted on January 28 and 29.
Key Details of the Sale:
Floor Price: ₹685 per share, which was about a 6% discount to the prevailing market price at the time of the announcement.
Amount Raised: Vedanta is expected to rake in roughly ₹4,500–₹4,800 crore from the sale.
Oversubscription: Strong demand from institutional investors on Day 1 led Vedanta to use its “green shoe” option, allowing it to sell more shares than initially planned.
So, why did Vedanta sell? The answer lies in debt management. Vedanta has been actively working to reduce its debt and strengthen its balance sheet. Selling a small stake in its cash-rich subsidiary gives the parent company a healthy liquidity boost.
Stock Price Action: A Bit of a Ride
As expected, the OFS announcement caused some short-term volatility. Large discounted share sales often make investors nervous, at least initially.
The Dip: On January 28, Hindustan Zinc shares fell nearly 3%, hitting an intraday low of ₹701.60 as the market digested the ₹685 floor price.
The Recovery: By January 29, the stock bounced back, trading in the ₹714–₹716 range and gaining close to 1% during the session.
The Bigger Picture
Despite the temporary pressure, the broader trend remains strong. Hindustan Zinc has jumped over 17% in January 2026 alone and is now trading close to its 52-week high of ₹733.
Why Investors Are Still Bullish
Even though the promoter reduced its stake, confidence in Hindustan Zinc remains high. Here’s why investors are staying optimistic:
Silver Is Shining: Global silver prices are at record highs, and as one of the world’s largest silver producers, Hindustan Zinc has benefited significantly.
Record Output: In its latest Q3 business update, the company reported its highest-ever third-quarter mined metal production at 276 kilotonnes.
Brokerage Backing: Big global brokerages such as HSBC and Jefferies have either upgraded the stock or maintained “Buy” ratings, pointing to better metal price outlooks and HZL’s strong dividend track record.
Vedanta’s stake sale is more about its own financial housekeeping than any concern over Hindustan Zinc’s performance. For retail investors, the OFS briefly offered a chance to buy the stock at a slight discount. With silver prices soaring and production at record levels, Hindustan Zinc continues to stand tall as a heavyweight in India’s metals sector.
