SHUBINVESTS I SEBI RA
5 Jun • 1:53 PM · SEBI-Registered Analyst
Hindustan Zinc Crashes 4% on Government Stake Sale Report
Hindustan Zinc shares fell 4.4% to ₹577 extending losses to 11% over six consecutive sessions after Bloomberg reported the government is considering selling up to 2% stake worth ₹5,000 crore. The sale could happen this month or in July with ICICI Securities, Axis Capital and HDFC Securities advising on the transaction.
Upcoming supply hits market Investors anticipate large number of shares being sold at a discount existing holders sell now to avoid buying cheaper shares later stock falls before the sale even happens.
THE GOVERNMENT'S DISINVESTMENT SPREE
Coal India 2% stake sold ₹4,500 crore raised
NHPC 6% stake sold ₹3,900 crore raised
Hindustan Zinc November 2025 1.6% sold at ₹505 ₹3,500 crore raised
Hindustan Zinc Now another 2% being considered ₹5,000 crore target
Hindustan Zinc is fundamentally strong India's largest zinc and lead producer with consistent dividend payouts. The 11% fall in six sessions is entirely driven by supply fear not business deterioration. Once the stake sale is completed and overhang clears the stock typically recovers.
Track official announcement of the stake sale timeline and floor price. If priced at a reasonable discount historically these OFS transactions have been good entry points for long term investors just like Coal India's OFS earlier.
