Hindustan Zinc Shares Slide Over 5% Following Block Deal Announcement by Parent Vedanta

On June 18, 2025, Hindustan Zinc shares (HZL) dropped over 5% on BSE, hitting an intraday low of ₹455.35 at 9:55 AM, shortly after opening at ₹462.40. The sharp decline comes on the heels of a major shareholding move by its parent company, Vedanta Ltd.

Hindustan Zinc Block Deal

According to CNBC-TV18, Vedanta has initiated a block deal to divest shares worth up to ₹3,018.2 crore in HZL. The floor price for the transaction has been set at ₹452.5 per share, nearly 7% below the previous day’s closing price, which added to the bearish sentiment around the stock.

The deal reportedly involves the sale of up to 66.7 million shares, representing approximately 1.6% of Hindustan Zinc’s total equity. DAM Capital Advisors has been appointed as the book-running lead manager (BRLM) for the offering, which is anticipated to attract strong interest from institutional investors, given HZL’s prominence in the global zinc market.

Hindustan Zinc Capacity Expansion

In a separate development earlier in the day, Hindustan Zinc informed the exchanges that its Board has greenlit the first phase of a significant expansion plan aimed at doubling its production capacity for zinc, lead, and silver. The company intends to increase its integrated refined metal capacity by 250 kilotonnes per annum (ktpa), alongside proportional enhancements in mining and milling capabilities.

The ₹12,000 crore expansion project is slated for completion within 36 months, highlighting HZL’s strategic focus on scaling operations to meet rising global demand for industrial metals.

Meanwhile, investor attention is also turning to Vedanta Ltd., whose board is set to meet on Wednesday to consider its first interim dividend proposal for the ongoing fiscal year.

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