Shares of Hindustan Zinc opened the session on June 18 with sharp cuts of around 7% after a ₹3,323 crore block deal hit the counter, with promoter Vedanta being the likely seller.
As many as 7.2 crore shares of Hindustan Zinc, making up a 1.71% stake in the company, were sold in the block deal. The transaction was executed at an average of ₹460.5 per share, an over 5% discount from the last close.
Buyers and sellers involved in the transaction could not be immediately ascertained. However, Moneycontrol had reported on June 17 that Vedanta was planning to sell a 1.6% stake in Hindustan Zinc through a block deal pegged at around ₹3,018 crore.
Vedanta held a 63.42% stake in Hindustan Zinc as per the company’s latest March quarter shareholding data. The Government owned more than 25% of the company, with the rest largely held by LIC and foreign investors, leaving only a small portion actually available for the public to trade.
The stake sale comes just days after Hindustan Zinc announced a dividend of ₹10 per share for FY25-26. Dividends from Hindustan Zinc have been a major source of income for Vedanta. This time around, Vedanta would earn ₹2,679 crore as dividends from Hindustan Zinc against its stake in the company.
Meanwhile, just yesterday, Hindustan Zinc’s board gave the green light to capital expenditure plans aimed at doubling its zinc, lead, and silver production capacity. As part of this ambitious 2x growth strategy, the company will expand its integrated refined metal capacity by 250 ktpa, along with necessary upgrades to its mining and milling operations. The entire project is expected to be completed within 36 months at an estimated cost of ₹12,000 crore.
