VEDL.NS Stock Today: January 28 HZL OFS to Raise ₹4,589 Cr, Vedanta Jumps
Vedanta Hindustan Zinc OFS began on 28 January with a ₹685 floor price to sell up to 1.59% of HZL, aiming to raise about ₹4,589 crore for debt reduction. Shares of VEDL.NS jumped, trading at ₹737.10, up 7.74%, and hitting a record high of ₹741.95. Hindustan Zinc eased on supply and discount pressure. Investors see the Vedanta Hindustan Zinc OFS as a near-term liquidity boost and a step toward simplifying the capital structure in India’s metals space.
Key terms of the HZL stake sale
The offer for sale runs for two days with a floor price of ₹685, a 6% discount to recent trades. Vedanta may sell up to 1.59% of Hindustan Zinc, targeting around ₹4,589 crore in gross proceeds. The company highlighted balance sheet goals behind the sale. Details of the offer and sizing were reported by Reuters.
The transaction supports Vedanta deleveraging by adding liquidity before results. Leverage remains elevated with debt to equity at 2.57 and net debt to EBITDA near 2.18, while interest coverage is 6.58. A stronger cash position can cut finance costs and reduce refinancing risk. The Vedanta Hindustan Zinc OFS also diversifies funding away from dividends and asset sales concentrated in a single quarter.
Market reaction and price levels
Vedanta share price surged to ₹737.10, up 7.74% from the previous close of ₹684.15, with a day range of ₹710.10 to ₹741.95 and heavy volume of 2.66 crore shares versus a 1.33 crore average. The new high eclipsed the prior 52-week peak of ₹707.35. RSI at 65.9 signals firm momentum, and ADX at 49 indicates a strong trend tied to the Vedanta Hindustan Zinc OFS catalyst.
Hindustan Zinc slipped as investors priced in supply from the discount offer and near-term overhang. Discounted OFS pricing often narrows in the following sessions if demand is strong, but weak take-up can keep pressure on spot quotes. Market commentary highlighted the decline despite strength in precious metals proxies, as noted by Moneycontrol.
What investors should track next
Monitor day-wise subscription, pricing versus the ₹685 floor, and institutional participation. Strong bids above floor price would be a clean read-through. The issuer’s quarterly results are scheduled on 29 January, which can shape guidance on cash use and leverage. Together with the Vedanta Hindustan Zinc OFS, these events set the near-term narrative for both counters.
If proceeds retire debt, interest savings can lift coverage and future free cash flow. Vedanta deleveraging could also support a steadier dividend profile over time. The stock shows a 3.26% dividend yield and a price to earnings of 23.1. Liquidity remains tight with a 0.73 current ratio, so sustained cash generation after the OFS will matter for durability.
Technicals and valuation check
Price is extended above the upper Bollinger Band, a sign of a strong breakout that can invite quick pullbacks. ATR at 14.5 points to higher intraday ranges. RSI sits below overbought, while the MACD histogram is slightly negative, showing modest momentum fatigue. Traders may watch ₹710 to ₹715 as a first support zone after the Vedanta Hindustan Zinc OFS-driven spike.
Vedanta commands about ₹2.75 lakh crore in market cap, a 6.86 price to book, and a 23.1 P/E, implying expectations of cycle support and execution on deleveraging. Our stock grade stands at B+ with a Neutral-to-Buy stance. Upcoming results, OFS completion, and any updates on capital allocation are likely to be the next valuation catalysts.
Final Thoughts
The Hindustan Zinc OFS sets a clear path to raise about ₹4,589 crore at a ₹685 floor, giving Vedanta flexibility to reduce debt and strengthen liquidity. The sharp move in Vedanta share price, new highs, and heavy volumes show that the market welcomes balance sheet progress. In the short run, watch OFS subscription, pricing versus the floor, and the 29 January earnings for guidance on debt repayment and dividends. For traders, strong trend signals are balanced by an extended setup and higher volatility. For investors, the Vedanta Hindustan Zinc OFS, leverage metrics, and cash flow delivery will determine whether the rerating holds.
FAQs
What is the size and floor price of the Hindustan Zinc OFS?
Vedanta launched a two-day OFS to sell up to 1.59% of Hindustan Zinc with a floor price of ₹685 per share, a discount of about 6% to recent market levels. The company aims to raise roughly ₹4,589 crore, subject to final demand, subscriptions, and pricing outcomes.
How did the OFS impact the Vedanta share price today?
Vedanta share price jumped to ₹737.10, up 7.74%, hitting a record high of ₹741.95 as traders priced in balance sheet gains and better liquidity. Heavy volumes supported the move. Follow-through will depend on OFS demand, pricing above the floor, and guidance in the quarterly results.
Is the OFS positive for Vedanta deleveraging?
Yes. Cash proceeds can retire debt and lower finance costs, helping Vedanta deleveraging. With debt to equity at 2.57 and interest coverage at 6.58, incremental reduction improves resilience. Execution on debt paydown, discipline on new capex, and stable commodity prices will shape the magnitude of benefits.
What should retail investors track during the Vedanta Hindustan Zinc OFS?
Track exchange notices for subscription updates and final pricing, compare the cut-off to the ₹685 floor, and check allocation details. Also watch Vedanta’s 29 January results for commentary on debt repayment and dividends. Price action around support levels after the event can offer better risk-reward entries.
What risks follow the Vedanta Hindustan Zinc OFS?
Key risks include weaker-than-expected OFS demand, commodity price swings affecting cash flows, and slower debt reduction. Technically, price is extended above bands, raising pullback risk. Liquidity metrics like a 0.73 current ratio mean steady operating cash generation is important after the event.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
