Hindustan Zinc stock plunges 8% as govt pares stake at sharp discount via OFS

The government owned a 29.54 percent stake in Hind Zinc while Vedanta holds 63.42 percent stake.

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26 Aug, 2025 12:21

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Shares of Hindustan Zinc took a beating and plummeted over 8 percent on November 6 as the government announced offloading a 2.5 percent stake in the company through an offer-for-sale.

The government's long-awaited plan for an OFS to pare stake in Hind Zinc will be executed at a floor price of Rs 505, marking a sharp discount of nearly 10 percent from the previous closing level.

At 10.04 am, shares of Hindustan Zinc were trading at Rs 517.10 on the NSE.

Under the OFS, which opened today, the government will divest 1.25 percent equity or 5.28 crore shares, with a greenshoe option to increase the offer size by another 1.25 percent.

Retail investors can bid on November 7, while the issue opened for non-retail investors today. There will be an indicative price for the non-retail category which shall be displayed separately. Ten percent of the offer size is reserved for retail investors, who can bid for shares up to Rs 2 lakh each.

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As of the company's latest shareholding data, the government owned a  29.54 percent stake in Hind Zinc while Vedanta holds 63.42 percent stake.

Moneycontrol  had reported back in August that an OFS for Hindustan Zinc was expected before the end of FY25, following the Cabinet's 2022 approval to sell the government’s entire stake in the company. Hindustan Zinc's demerger process is set to begin once the central government finalizes its long-pending divestment, as CEO Arun Misra stated in an interview on April 19.

Previously, another promoter, Vedanta also divested 3.17 percent stake in the company in August, targeted to pare its substantial debt.

Hindustan Zinc announced a 35 percent rise in its September quarter net profit to Rs 2,327 crore, up from Rs 1,729 crore in the same period last year, driven by gains in zinc prices amid expectations of stronger demand from China and global supply concerns.

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