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Hindustan Zinc Falls Over 4 Percent on Reports of Government Stake Sale
Hindustan Zinc shares declined more than 4% on June 5 after reports suggested that the Government of India may sell up to a 2% stake in the company through an offer for sale. The proposed divestment could raise around ₹5,000 crore and weighed on investor sentiment, extending the stock's recent losing streak.
By Finblage Editorial Desk
11:55 am
5 June 2026
Shares of Hindustan Zinc Ltd. fell more than 4% during trading on June 5, making it one of the top losers among large-cap stocks after reports indicated that the Government of India is considering a stake sale in the company.
According to reports, the government may divest up to 2% of its holding in Hindustan Zinc through an offer for sale (OFS), potentially raising around ₹5,000 crore. The Centre currently holds a 27.92% stake in the company, while Vedanta Ltd. remains the majority shareholder with a controlling interest.
The prospect of additional shares entering the market triggered selling pressure in the stock, as investors assessed the potential impact of the stake sale on near-term demand and pricing. Hindustan Zinc shares have been under pressure in recent sessions and have declined by roughly 11% over the past six trading days.
The proposed divestment forms part of the government's broader disinvestment strategy aimed at raising resources through stake sales in public sector holdings. Market participants will closely monitor the timing, pricing, and structure of any potential transaction.
Despite the recent correction, analysts continue to view Hindustan Zinc as a strong cash-generating company supported by its leadership position in the zinc market, robust dividend payouts, and healthy balance sheet. However, near-term sentiment may remain influenced by developments related to the government's stake sale plans.
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