25 Aug , 2026 By : Debdeep Gupta
Shares of Hindustan Zinc fell nearly 3 percent on August 25 amid renewed expectations that the government could pare its stake in the company through an Offer for Sale (OFS), after launching a stake sale in Hindustan Copper.
Hindustan Zinc shares were trading at around Rs 588 in late-morning deals, down 2.65 percent from the previous close. The stock has declined 3.9 percent so far in 2026, compared with a 7.5 percent fall in the Nifty 50. Hindustan Zinc, which has a market capitalisation of more than Rs 2.48 lakh crore, is one of the world's major integrated zinc producers and also has significant exposure to silver.
The decline comes amid expectations of a fresh government stake sale in Hindustan Zinc. A source had reported earlier this month that the government was likely to launch OFS transactions in four companies this fiscal, with Hindustan Zinc and Hindustan Copper among those at the top of the priority list.
The government is looking to sell around 1.5 percent in Hindustan Zinc, according to people aware of the development. At current market levels, a stake sale of that magnitude could fetch roughly Rs 3,500-4,000 crore, depending on the final offer size and pricing.
The expectations gained prominence after the government moved ahead with an OFS in Hindustan Copper, another company identified among its priority stake-sale candidates.
The government on August 24 announced an offer to divest 3 percent equity in Hindustan Copper, along with a green-shoe option to sell another 3 percent in case of oversubscription. The floor price was fixed at Rs 514 per share, a discount of around 10.5 percent to the stock's August 24 closing price.
Hindustan Copper shares dropped more than 6 percent in early trade on Tuesday following the announcement. The launch of that transaction could put the focus on Hindustan Zinc as the government progresses with its divestment plans.
Merchant bankers have already been appointed for the proposed Hindustan Zinc transaction, according to the earlier a source's report. However, the timing, final size and pricing of any OFS have not yet been announced.
The government currently holds a 27.92 percent stake in Hindustan Zinc, while Vedanta owns a controlling 60.71 percent. The government's previous stake sale in Hindustan Zinc took place in 2024.
Weakness in silver prices also provided an unfavourable backdrop for Hindustan Zinc stock on Tuesday. Spot silver was down 1.3 percent at $68.01 an ounce.
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