Hindustan Zinc Share Price: Stock Falls 3% As Government Stake Sale Expectations Return
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Hindustan Zinc shares slipped nearly 3% on August 25 as renewed OFS speculation and weak silver prices weighed on the stock, following the government's Hindustan Copper stake sale announcement and reports of a planned 1.5% divestment in Hindustan Zinc worth Rs 3,500-4,000 crore.
Shares of Hindustan Zinc came under pressure on Tuesday, August 25, with the stock falling nearly 3% as expectations of a fresh government stake sale resurfaced following the launch of a similar transaction in Hindustan Copper.
Hindustan Zinc shares were trading around ₹588 in late-morning deals, down 2.65% from the previous close. The stock has declined 3.9% so far in 2026, compared with a 7.5% fall in the Nifty 50.
The selling pressure comes a day after the government announced an offer for sale (OFS) in Hindustan Copper, reviving investor focus on its plans to reduce holdings in other listed companies. Hindustan Zinc is among the companies considered a priority for the government's disinvestment programme.
According to an earlier Moneycontrol report, the government is looking to sell around 1.5% of its stake in Hindustan Zinc during the current financial year. At the stock's current market value, such a transaction could raise roughly ₹3,500-4,000 crore, although the eventual proceeds would depend on the final size and pricing of the offer.
The government currently owns a 27.92% stake in Hindustan Zinc, while Vedanta holds a controlling 60.71% interest. The Centre last sold part of its holding in the company in 2024.
Hindustan Zinc OFS: Why Investors Are Watching
The government's Hindustan Copper transaction has added to expectations around Hindustan Zinc. On August 24, the Centre announced plans to sell a 3% stake in Hindustan Copper through an OFS, with an additional 3% green-shoe option in case of excess demand.
The floor price for the Hindustan Copper offer was set at ₹514 per share, around 10.5% below the stock's closing price on August 24. Hindustan Copper shares subsequently fell more than 6% in early trade on Tuesday.
Merchant bankers have already been appointed for the proposed Hindustan Zinc stake sale, according to the earlier Moneycontrol report. However, the government has not yet disclosed the timing, final size or pricing of any OFS in the company.
Hindustan Zinc, with a market capitalisation of more than ₹2.48 lakh crore, is one of the world's major integrated zinc producers and also has significant exposure to silver. Movement in precious metal prices therefore remains another factor investors are watching.
Silver prices were also weaker on Tuesday, with spot silver declining 1.3% to $68.01 an ounce, adding to the negative backdrop for Hindustan Zinc shares.
The stock's performance will now be closely watched as investors assess the possibility of a government OFS, along with the impact of movements in zinc and silver prices on the company's earnings outlook.
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This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Rochelle Britto has spent 8+ years decoding India's markets, businesses, and consumer economy, reporting for ET Prime and Times Internet along the way, covering the stories behind the numbers.
A Mumbai native and perpetual planner of the next holiday, she stays far, far away from the eternal question, “Where are we going next?” When she's not chasing headlines, she's chasing new cultures, open roads, and a bit of quiet in nature.
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