Hindustan Zinc Share Price Drops 6% Amid Reports of Government's 2% Stake Sale Plan, Vedanta Declines 5%

Hindustan Zinc Share Price Plunges 6% Amid Reports of Government Stake Sale

Shares of Hindustan Zinc plummeted nearly 6% on Friday, following a media report indicating 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.

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The report further stated that discussions are still underway and key details, including the timing and size of the offering, remain subject to change. In a previous stake sale, the government had 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.

As of March 31, 2026, the central government owned nearly 28% of Hindustan Zinc, India's largest silver producer, according to the company's latest shareholding pattern. Vedanta, the company's promoter, held close to a 61% stake during the same period.

| Government Stake Sale in Hindustan Zinc: Past and Present | | --- | --- | | Previous Stake Sale | Current Stake Sale | | 1.6% stake sold in November | Up to 2% stake sale | | ₹3,500 crore raised | ₹5,000 crore potential | | ₹505 apiece | ₹569.20 (intraday low) |

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).

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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. The Anil Agarwal-led company stated that it was fully cooperating with the authorities and providing all requested information.

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.