Hindustan Zinc Stock Plunges 4% Amid Speculation Over Potential Government Stake Sale

Hindustan Zinc Shares Plummet 4% Amid Reports of Fresh Stake Sale

Shares of Hindustan Zinc Ltd suffered a sharp decline of over 4 percent on Friday, marking the sixth consecutive session of losses. The stock fell as much as 4.4 percent to Rs 577 during late morning trade, making it one of the top losers on the Nifty 100 index. This decline brings the stock's total loss to about 11 percent over the last six trading sessions.

The sharp fall in Hindustan Zinc's stock price comes amid reports that the government is considering a fresh stake sale worth up to Rs 5,000 crore in the company. According to a Bloomberg report, which cited unidentified sources, the government is weighing the sale of up to a 2 percent stake in Hindustan Zinc. The transaction could raise as much as Rs 5,000 crore and may be launched this month or in July, the report said.

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The report added that deliberations are ongoing and the timing and size of the offering could still change. The potential stake sale comes as the government steps up disinvestment efforts. Last week, it raised about Rs 4,500 crore through the sale of a 2 percent stake in Coal India. Earlier this week, it sold a 6 percent stake in NHPC, raising around Rs 3,900 crore.

The government last sold a 1.6 percent stake in Hindustan Zinc in November 2025, raising about Rs 3,500 crore. The shares were priced at Rs 505 apiece in that transaction. As of March 31, 2026, the government held a 27.92 percent stake in Hindustan Zinc, while promoter Vedanta Ltd owned 60.71 percent, according to exchange filings.

Despite the recent correction, Hindustan Zinc stock remains up 17.5 percent over the past one year, outperforming the Nifty 50, which has declined 5.4 percent during the same period. The company commands a market capitalisation of about Rs 2.45 lakh crore.