Hindustan Zinc 's promoter Vedanta Limited has announced a significant offer for sale (OFS) of equity shares through the stock exchange mechanism, marking a strategic move to optimize its capital structure and strengthen its balance sheet.

Offer Structure and Timeline

The OFS will take place over two trading days on January 28-29, 2026, through separate windows on BSE and NSE. The offer follows a structured approach with different categories of investors participating on designated days.

Investor Categories and Allocation

The offer is structured with distinct categories for different types of investors, ensuring broad participation while maintaining regulatory compliance.

Non-Retail Category (January 28, 2026):

• Only non-retail investors can participate on T-day
• Minimum 25% reserved for mutual funds and insurance companies
• No single bidder (except mutual funds and insurance companies) can receive more than 25% allocation
• Participants can indicate willingness to carry forward unallotted bids to T+1 day

Retail Category (January 29, 2026):

• Individual investors with bid value not exceeding ₹2,00,000
• Minimum 10% of offer shares reserved for retail investors
• Option to bid at cut-off price or specific price
• No discount offered to retail investors

Financial Implications and Settlement

The OFS represents a substantial divestment opportunity, with the potential to raise significant capital depending on market response and oversubscription exercise.

Settlement will occur on a trade-for-trade basis, with different timelines based on investor category and participation day. Non-retail investors with 100% upfront payment will see T+1 settlement for T-day bids, while retail investors follow standard secondary market settlement procedures.

Regulatory Framework and Conditions

The offer operates under comprehensive SEBI guidelines for stock exchange mechanism offers, ensuring transparency and investor protection. Vedanta reserves rights to withdraw the offer before opening or cancel it post-bidding under specific conditions, including insufficient demand or settlement defaults.

Key operational aspects include 100% upfront margin requirements for most categories, real-time fund collection and release mechanisms, and strict compliance with securities transaction regulations. The designated stock exchange is NSE, with NSE Clearing Limited serving as the clearing corporation.

Citigroup Global Markets India Private Limited will act as the seller's broker, facilitating the entire transaction process across both stock exchanges with appropriate regulatory oversight and market dissemination requirements.

Source:

Hindustan zinc 's Committee of Directors has approved a significant debt fundraising initiative, sanctioning the issuance of non-convertible debentures worth ₹1400.00 crore. The committee meeting, held on January 23, 2026, concluded the approval process efficiently, commencing at 09:30 AM IST and concluding at 09:45 AM IST.

NCD Structure and Components

The approved NCDs will be unsecured, redeemable, rated, and listed instruments issued through private placement. The debentures are structured in two separately transferable and redeemable principal parts to provide flexibility in the issuance process.

Issuance Details and Listing

The NCDs will be issued on a private placement basis, targeting institutional and qualified investors. BSE Limited has been selected as the stock exchange for listing these debentures, ensuring liquidity and transparency for investors.

Terms and Conditions

The specific terms regarding tenure, coupon rates, interest payment schedules, and redemption details will be outlined in the disclosure documents. Since the debentures are unsecured, no charge or security will be created over the company's assets.

Key aspects of the NCD structure include:

• Security: Unsecured debentures with no asset backing
• Flexibility: Two separate principal parts allowing phased issuance
• Compliance: Full adherence to SEBI Listing Regulations
• Documentation: Comprehensive disclosure documents to be prepared

Regulatory Compliance

The approval follows the company's earlier communication dated January 20, 2026, and complies with Regulations 30 and 51 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has also adhered to SEBI Circular SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024, ensuring all regulatory requirements are met.

Currently, there are no defaults in payment of interest or principal amounts, and no special rights, interests, or privileges are attached to these instruments beyond what will be specified in the disclosure documents.