Hindustan Zinc share price slides 6% on stake-sale report

What moved the stocks on Friday

Shares of Hindustan Zinc Ltd and Vedanta Ltd fell sharply in Friday’s session after a Bloomberg report said the Centre is considering selling a stake in Hindustan Zinc, citing sources. At last check, Hindustan Zinc was down 6.16% at ₹566.55, while Vedanta was lower by 3.94% at ₹314.55. The selling pressure was visible early in the day, with Hindustan Zinc falling as much as 5.7% to an intraday low of ₹569.20 on the BSE. Vedanta shares also slipped nearly 5% to ₹312.35 following the report.

The market reaction reflects how sensitive both counters are to any news flow around stake sales and promoter holding. Hindustan Zinc is a large, liquid stock, and even a small change in share supply expectations can impact near-term pricing. Vedanta, as the promoter and parent, tends to trade in sympathy when investors anticipate changes in the group’s shareholding or cash flows.

Bloomberg report: Centre weighs a potential sale

The report indicated the government is considering selling up to a 2% stake in Hindustan Zinc through an offer that could fetch as much as ₹5,000 crore. It also said the Department of Investment and Public Asset Management (DIPAM) is targeting a launch of the stake-sale process either later this month or in July.

While details such as exact size, pricing, and structure were not confirmed in the information provided, the report was enough to trigger a risk-off response. Markets typically price in the possibility of an offer for sale (OFS) or block transactions at a discount to the prevailing market price, which can weigh on sentiment.

Why Vedanta moved with Hindustan Zinc

Vedanta is the promoter of Hindustan Zinc and, as per the information cited, owns a 60.71% stake in the zinc producer. In another promoter-holding reference linked to a separate block-deal report, Vedanta Ltd (promoter) was listed at 63.42%. A separate report also noted Vedanta holding “a little over 63%”.

These references point to Vedanta’s majority control and help explain the linkage between the two stocks. Any stake-sale headline can lead investors to reassess supply, potential changes in control dynamics, and the promoter’s near-term funding plans.

ED searches and FEMA probe: what Vedanta disclosed

Vedanta also recently responded to searches by the Enforcement Directorate (ED) at its premises linked to alleged violations under the Foreign Exchange Management Act (FEMA). The company said the searches commenced on June 1 and concluded on June 3, covering offices in Delhi, Mumbai, and Udaipur.

In a separate exchange filing, Vedanta said the Enforcement Directorate team visited some offices of Vedanta and Hindustan Zinc, a subsidiary, after stock exchanges sought clarification regarding news reports. The Economic Times reported, citing officials, that ED conducted searches at premises linked to the Vedanta Group in Delhi and Mumbai as part of a FEMA investigation.

Demerger overhang: four entities, listings awaited

Vedanta’s stock has remained in focus due to its proposed demerger, under which it is proposed to be split into four separate entities. The listings of these entities are still awaited.

Vedanta had announced that every eligible shareholder would receive one share each of Vedanta Aluminium Metal (VAML), Talwandi Sabo Power (to be renamed Vedanta Power), Malco Energy (to be renamed Vedanta Oil and Gas), and Vedanta Iron and Steel for every share held in the parent company. The restructuring has been among the largest in India’s metals and mining sector, and investors have been tracking timelines and execution.

Recent performance: weekly, monthly, and 2026 moves

Hindustan Zinc shares have declined more than 9% over the past week and over 6% in the last one month, according to the figures cited. The stock is also down more than 6% so far in 2026.

Vedanta shares have tumbled 6% in one week but gained around 23% in one month. The stock has also seen event-driven moves around the demerger and broader metals sentiment.

Key data points at a glance

Other episodes that shaped sentiment in the same period

Hindustan Zinc shares also saw pressure earlier in the week after Vedanta confirmed the ED visit linked to the FEMA-related investigation. In another instance, Hindustan Zinc’s share price fell 6.05% to close at ₹455.60 on the NSE on June 18 after a large block deal. In that session, over 7.2 crore shares, representing 1.71% of Hindustan Zinc’s equity, changed hands through block deals. The block deal was reported at about ₹3,300 crore, and media reports linked it to promoter activity, with Vedanta reportedly offloading a portion of its stake, though the company did not officially confirm the seller.

Separately, a report described Vedanta’s committee approving the sale of up to 6.7 crore equity shares of Hindustan Zinc, representing a 1.59% stake, with an OFS floor price of ₹685 per share. The proceeds expectation cited was ₹4,589.50 crore, with the OFS schedule set for non-retail investors on January 28 and retail investors on January 29. Another report said Vedanta was selling about a 1.6% stake via a $150 million block deal at a floor price of ₹452.50, at a 7% discount to the last close.

Metals linkage: silver, duties, and macro drivers

The two stocks have also been influenced by commodity-linked news flow. In one session, Hindustan Zinc (₹594.05) and Vedanta (₹644.25) were reported down 7% and 6% respectively after silver prices fell sharply by over 15%. That report also said Hindustan Zinc had plunged 17% and Vedanta 16% in the past week on profit booking.

In contrast, there was also a day when both stocks rallied in an otherwise subdued market after the government increased import duty on gold and silver from 6% to 15%, effective May 13, 2026. Hindustan Zinc surged up to ₹677.10 intraday, while Vedanta was up to ₹312.90. Reports described the move as potentially supportive for Hindustan Zinc because higher duties could raise the landed cost of silver imports.

What to watch next

The immediate triggers for Hindustan Zinc and Vedanta remain stake-sale headlines and clarity on timing and structure, especially around any proposed government divestment process referenced in the Bloomberg report. Investors are also tracking developments related to the ED FEMA probe after the June 1 to June 3 search period disclosed by Vedanta. And for Vedanta, the market is waiting for the listings of the proposed demerged entities.

Conclusion

Hindustan Zinc and Vedanta fell sharply as markets reacted to a report that the Centre may sell up to a 2% stake in Hindustan Zinc, with both stocks already in an event-heavy news cycle. With ED-related disclosures, demerger execution, and commodity-linked swings also in play, price action is likely to remain headline-driven until the next set of confirmed steps on stake sale timelines and corporate actions.