Hindustan Zinc's OFS oversubscribed 1.3 times amid commodity rally

Vedanta's offer for sale in Hindustan Zinc sees 1.3 times demand over base issue, with strong institutional interest helping ease overhang on the stock

The offer for sale (OFS) in Hindustan Zinc (HZL) by promoter Vedanta saw 1.3 times demand over its base issue size. The OFS garnered bids for 42.82 million shares against the 33.5 million shares initially on offer.

 

How much stake did Vedanta put on the block?

 

HZL informed stock exchanges that Vedanta has decided to extend the oversubscription option to the extent of 14.1 million shares, taking the total offer size to 47.58 million shares. A total of 67 million shares, or about 1.6 per cent equity, was put on the block in the OFS.

 

What price levels did the bids come in at?

 

 

The floor price for the OFS was set at ₹685, while most bids came in at around ₹691, exchange data showed. Another 6 million shares reserved for retail investors will be auctioned on Thursday. Vedanta is expected to raise around ₹3,200 crore from the OFS, which will help improve its balance-sheet profile.

 

How did the stocks react in the market?

 

Shares of Hindustan Zinc fell 2.6 per cent to close at ₹708, paring their year-to-date gain to 15 per cent. Vedanta shares rallied 4.5 per cent to ₹737, extending their year-to-date gain to 22 per cent. Both commodity stocks have seen a sharp upmove this year amid a global rally in metals.

 

What does the OFS mean for Hindustan Zinc investors?

 

At the end of the December 2025 quarter, Vedanta held a 61.84 per cent stake in HZL. Analysts said the OFS removes a key overhang for the stock.

 

Shares of Hindustan Zinc have rallied this year, supported by gains in silver and zinc prices, which are up 8 per cent and 60 per cent, respectively, on a year-to-date basis.

 

What are brokerages saying on the stock?

 

Analysts said the sharp rise in silver prices is yet to be fully reflected in HZL’s share price, even though the company is the country’s leading primary silver producer.

 

Brokerages such as Jefferies and HSBC currently have a ‘buy’ rating on Hindustan Zinc, with a target price of ₹750.

 

“HZL delivered a strong earnings performance in Q3FY26, primarily driven by favourable metal pricing and a recovery in volumes. The company continues to focus on improving production output with tighter cost-control measures, leading to margin sustenance,” Motilal Oswal said in a note earlier this month, assigning a target price of ₹720. 

Shares of logistics provider Shadowfax Technologies fell 

12 per cent during their trading debut on Wednesday. Shares ended at ₹109.2, down ₹14.8, or 11.95 per cent over its issue price of ₹124 per share. 

The stock hit a high and a low of ₹119.7 and ₹109 on the NSE, where ₹326 crore worth of shares changed hands. 

The weak debut follows lacklustre response to the company’s ₹1,907-crore initial public offering (IPO), which was subscribed less than 3x. At the last close, Shadowfax was valued at ₹6,312 crore.