Hindustan Zinc Shares Drop 5% Amid Government Stake Sale Plans
Hindustan Zinc shares tumble 5% to 6-week low after report of govt's plan to sell 2% stake for Rs 5,000 crore
Image: The Economic Times
Hindustan Zinc shares fell nearly 5% to Rs 575.20 apiece, marking a six-week low, following reports of the Indian government planning to sell a 2% stake for approximately Rs 5,000 crore ($525 million). The government's ongoing disinvestment strategy includes recent stake sales in Coal India and NHPC.
- 01The Indian government plans to sell a 2% stake in Hindustan Zinc for up to Rs 5,000 crore ($525 million).
- 02The shares dropped to Rs 575.20, the lowest price in six weeks, with Vedanta shares also declining by 3%.
- 03The Department of Investment and Public Asset Management (DIPAM) is expected to initiate the sale process this month.
- 04Hindustan Zinc's market capitalization stands at over Rs 2.43 lakh crore, with the government holding nearly 28% of the company.
- 05The stock has seen a decline of over 9% in the past week and more than 6% in 2026 so far.
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Shares of Hindustan Zinc experienced a significant decline of nearly 5%, reaching Rs 575.20 apiece, the lowest level in six weeks. This drop was triggered by reports indicating that the Indian government plans to sell a 2% stake in the company for up to Rs 5,000 crore (approximately $525 million). The Department of Investment and Public Asset Management (DIPAM) is set to launch the sale process either this month or in July. Concurrently, shares of Vedanta, the largest promoter of Hindustan Zinc, fell by 3% to Rs 318.80. The government has been actively pursuing disinvestment strategies, having recently raised funds from stake sales in Coal India and NHPC. Additionally, Hindustan Zinc's shares have seen a decline of over 9% in the past week and more than 6% year-to-date, despite a one-year gain of around 17%. The company holds a market capitalization exceeding Rs 2.43 lakh crore, with the government holding nearly 28% of its shares.
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The potential stake sale could influence market perceptions and investor confidence in Hindustan Zinc, impacting share prices.
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