Hindustan Zinc share price: Shares of Hindustan Zinc plunged nearly 6% on Friday after a media report indicated that the government is considering selling up to a 2% stake in the company through an offer that could fetch as much as ₹5,000 crore ($525 million).
The stock fell as much as 5.7% to an intraday low of ₹569.20 on the BSE. Shares of Vedanta, the parent company of Hindustan Zinc, also came under pressure and declined nearly 5% to ₹312.35 apiece following the report.
According to the report, the Department of Investment and Public Asset Management (DIPAM) is targeting a launch of the stake-sale process either later this month or in July. The report added that ICICI Securities, Axis Capital, IIFL Capital Services and HDFC Securities have been appointed to advise the government on the proposed transaction.
The report further stated that discussions are still underway and key details, including the timing and size of the offering, remain subject to change.
The government had previously divested a 1.6% stake in Hindustan Zinc in November, raising around ₹3,500 crore. The shares in that transaction were sold at ₹505 apiece.
The central government owned nearly 28% of Hindustan Zinc, India’s largest silver producer, as of March 31, 2026, according to the company’s latest shareholding pattern. Vedanta, the company’s promoter, held close to a 61% stake during the same period.
The report of a potential government stake sale in Hindustan Zinc comes amid an accelerated disinvestment drive by the Centre.
In recent weeks, the government has stepped up efforts to raise funds through stake sales in state-owned companies. Last week, it raised around $531 million through the sale of a 2% stake in Coal India, the country’s largest coal miner. Earlier this week, the government garnered about $450 million by offloading a 6% stake in NHPC. Reports have also suggested that the Centre is considering a 2% stake sale in Life Insurance Corporation of India (LIC), a move that could potentially fetch up to ₹10,000 crore ($1 billion).
ED Searches at Hindustan Zinc
Hindustan Zinc shares had also come under pressure earlier this week after Vedanta confirmed that officials from the Enforcement Directorate (ED) had visited some of its offices as part of a FEMA-related investigation.
“We hereby inform that the Enforcement Directorate team visited some offices of our company and Hindustan Zinc, a subsidiary of the company,” Vedanta said in an exchange filing after stock exchanges sought clarification regarding media reports of searches linked to the Vedanta Group.
The Anil Agarwal-led company stated that it was fully cooperating with the authorities and providing all requested information. Subsequently, Vedanta informed investors that the searches had concluded and that no penalty, restriction or adverse action had been imposed by the authorities.
Hindustan Zinc Share Performance
Hindustan Zinc shares have declined more than 9% over the past week and over 6% in the last one month. The stock is also down more than 6% so far in 2026. Despite the recent weakness, the shares have delivered gains of around 17% over the past one year.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
