Hindustan Zinc share price falls 6% amid ₹3,300 crore block deal; promoter Vedanta likely seller

Hindustan Zinc block deal: Hindustan Zinc share price slipped over 6 per cent to ₹455.60 apiece on NSE in Wednesday's trading session (June 18) after 7.2 crore shares changed hands in a block deal.

According to a CNBC-TV18 report, shares worth ₹3,323 crore, which is 7.2 crore shares or 1.71 per cent of the company's equity, were traded in block deals at a price of ₹460 each.

Media reports had earlier indicated that Hindustan Zinc's promoter Vedanta could pare its stake in the company via block deals today. While the initial deal size was pegged at ₹7,500, the block deal was downsized to nearly ₹3,300 crore.

As of the end of the March quarter, Vedanta owned 63.42% of Hindustan Zinc, according to exchange filings. The Government retained a stake of over 25%, while the remaining shares were held by LIC and foreign portfolio investors, resulting in a very limited public float. Individual retail investors, defined as those with shareholdings up to ₹2 lakh, accounted for just 2.5% of the company’s ownership.

Hindustan Zinc expansion plans 2025

Hindustan Zinc has been in the news lately, following the interim dividend announcement, rise in silver prices and the board's nod for preliminary plans to double its production capacity for zinc, lead, and silver.

As part of its two-fold expansion strategy, the company has approved increasing its integrated refined metal capacity by 250 kilotonnes per annum (ktpa), along with corresponding enhancements in its mining and milling capacities.

The entire project is expected to be completed within 36 months at an estimated total investment of approximately ₹12,000 crore.

“We remain positive on HZL given its presence in the lower end of the global cost curve facilitated by high grade captive mines sufficient to meet requirements for decades, 100 per cent captive power plants, sizeable scale, diversified revenue stream with increasing contribution from silver sales,” brokerage firm JM Financial said in a note.

The brokerage firm has maintained a ‘buy’ rating on Hindustan Zinc stock, with a target price of ₹550 apiece, and sees an upside potential of up to 13 per cent.

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