Hindustan Zinc shares sink 6% amid block deal; promoter Vedanta likely seller

Shares of Hindustan Zinc tumbled over 6% in opening trade on Wednesday, driven by strong volume amid reports that promoter Vedanta was looking to offload shares through block deals. Over 7 crore shares, representing 1.7% equity of Hindustan Zinc, changed hands over the counter on the BSE through a block deal, valued at around ₹3,300 crore. The name of buyers and sellers were not known immediately, and official details of the transaction is awaited.

Early today, Hindustan Zinc shares opened lower at ₹462.40, down 4.9% against previous closing price of ₹486.40 on the BSE. In the first hour of trade so far, the metal and mining stock declined by as much as 6.4% to ₹455.35.

At the time of reporting, Hindustan Zinc's share price was down 5% at ₹462.10 apiece, with a market capitalisation of ₹1.95 lakh crore. The counter touched its 52-week high of ₹717.10 on July 8, 2024, and a 52-week low of ₹378.65 on March 3, 2025.

In calendar year 2025, shares of Hindustan Zinc have risen 3.5%, while it delivered a negative return of 29% in the past one year. The large-cap stock has climbed over 2.5% in a month.

According to reports, promoter Vedanta was looking to sell shares worth ₹7,500 crore in its subsidiary, Hindustan Zinc, through block deals. The shares were expected to be offered at a discount of up to 10% to the previous closing price. DAM Capital and Citi were reportedly managing the deal as brokers.

As per the latest shareholding pattern available on the BSE, Vedanta owned a 63.42% stake in the company.

Last week, Hindustan Zinc declared its first interim dividend of ₹10 per share, amounting to a 500% payout on the face value of ₹2, for FY26.

Hindustan Zinc to invest ₹12,000 cr for capacity addition

In an exchange filing on June 17, Hindustan Zinc Ltd (HZL) said that its board had approved an investment plan of ₹12,000 crore to double the capacity of zinc, lead, and silver. The company plans to expand its integrated refined metal capacity by 250 KTPA (kilo-tonnes per annum) in the next three years.

“The board of directors of the company at their board meeting held today i.e., June 17, 2025, have approved setting up of 250 KT integrated Zinc metal complex at Debari and associated mining and milling capacities at a capital expenditure of up to ₹12K cr, as part of the company’s overall 2X growth plan,” it said in a BSE filing.

According to the company, the expansion aligns with the strong growth in demand both in India and globally over the next five years. The board has approved the project for setting up a new 250 KTPA integrated smelter at Debari along with mines & mills expansion across the mines.

“The project is targeted to be completed in a period of 36 months with an overall cost of ₹12,000 crore,” the release noted.

“We are excited to announce this 2x growth project towards doubling our capacity across zinc, lead and silver, which is strategically aligned with the country’s expanding economic landscape, increasing demand opportunities and keeping country self-reliant for Zinc,” said Arun Misra, CEO, HZL. 

For FY25, HZL reported an 18% growth in revenue to ₹34,083 crore and recorded full-year profit after tax (PAT) of ₹10,353 crore, up 33% YoY, driven by the four-year lowest cost of production (COP) at $1,052 per metric tonne (MT). It also registered a robust FY25 Ebitda of ₹17,465 crore, up 28% YoY, while the margin improved by 400 bps YoY to 51%.

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