Shares of mining conglomerate Vedanta continued their impressive upward trajectory on Wednesday, January 28, marking the fifth consecutive trading session of gains. The stock opened higher at ₹711 and surged to a fresh all-time high of ₹741.95 during the session, representing a significant 5.20% increase from the previous closing price. Over this five-session period, Vedanta shares have accumulated a robust 10.5% gain, reflecting strong investor confidence.
Hindustan Zinc Stake Sale Fuels Momentum
The latest rally in Vedanta shares is primarily driven by the company's strategic decision to divest a portion of its stake in subsidiary Hindustan Zinc. In a regulatory filing made after market hours on Tuesday, Vedanta announced that its Committee of Directors has approved the sale of up to 6.70 crore equity shares in Hindustan Zinc through an offer-for-sale (OFS) route.
OFS Details and Financial Implications
The floor price for this OFS has been set at ₹685 per share, which represents a 6% discount to Hindustan Zinc's closing price on the announcement day. At this floor price, the total transaction is valued at approximately ₹4,589.50 crore. The OFS is scheduled to open for non-retail investors on January 28, followed by retail investors on January 29.
Vedanta has clarified that the proceeds from this stake sale will be utilized to strengthen and deleverage the company's balance sheet while optimizing its capital structure. As of the December quarter, Vedanta held a 61.84% stake in Hindustan Zinc, according to data from Trendlyne.
Broader Market Context and Performance
Beyond the immediate catalyst of the Hindustan Zinc stake sale, Vedanta's share price rally is also supported by favorable conditions in industrial metal markets. The company has demonstrated exceptional performance in recent years, with shares delivering a 36% return to investors in 2025 and extending gains by 22% in the first 18 trading sessions of 2026.
Over longer timeframes, Vedanta shares have shown remarkable growth, surging 130% over three years and an impressive 351% over five years. This sustained upward movement has caught the attention of market analysts and institutional investors alike.
Analyst Upgrades and Future Outlook
Earlier this month, domestic brokerage firm Nuvama Institutional Equities upgraded its target price for Vedanta shares to ₹806 from ₹686 while maintaining a buy rating. This revision reflects the brokerage's assessment of value unlocking potential from Vedanta's ongoing demerger process, with raised valuation multiples across business segments.
Hindustan Zinc, the subsidiary at the center of the current transaction, specializes in the exploration, mining, and smelting of zinc, lead, and other non-ferrous metals. The company's product portfolio includes zinc ore, lead-zinc concentrate, zinc metal, lead metal, cadmium metal, silver metal, and sulphuric acid.
Disclaimer: Investors are advised to consult with certified financial experts before making any investment decisions regarding Vedanta or other market securities.
