The government is planning to launch an offer for sale (OFS) in Hindustan Zinc within the next two weeks, with the Centre looking to sell a 1.5-2% stake in the mining company, according to sources told NDTV Profit. Officials from Hindustan Zinc met the Department of Investment and Public Asset Management (DIPAM) last week to discuss the proposed OFS. The transaction would mark the government's latest attempt to monetise part of its holding in the zinc producer. As per Moneycontrol, the expectations gained prominence after the government moved ahead with an OFS in Hindustan Copper, another company identified among its priority stake-sale candidates. The Hindustan Copper stake sale has revived expectations of a similar transaction in Hindustan Zinc, with Moneycontrol reporting that the government could launch OFS transactions in four companies during the current financial year, with Hindustan Zinc and Hindustan Copper among the priority names.
The proposed stake sale could fetch the government around ₹3,500-4,000 crore at current market levels, depending on the final offer size and pricing, as reported by Moneycontrol. The government currently owns a 27.92% stake in Hindustan Zinc, while Vedanta holds a controlling 60.71% stake in the company. The last government stake sale in Hindustan Zinc took place in 2024. Moneycontrol reports that merchant bankers have already been appointed for the proposed Hindustan Zinc transaction, though the timing, final size and pricing of any OFS have not yet been announced.
Hindustan Zinc shares fell nearly 3% on Tuesday following renewed expectations of a government stake sale, with the stock hitting an intraday low of ₹586.85, down 2.84% from the previous close of ₹604, as reported by The Economic Times. The stock has declined 2.83% so far in 2026, underperforming the NSE's 6.16% gain. Weakness in silver prices also provided an unfavourable backdrop, with spot silver down 1.3% at $68.01 an ounce. The company, which has a market capitalisation of more than ₹2.48 lakh crore, is one of the world's major integrated zinc producers and has significant exposure to silver.
Hindustan Zinc delivered strong quarterly results for Q1 FY2026, with revenue from operations rising 77% year-on-year to ₹13,747 crore from ₹7,771 crore in the corresponding quarter of the previous year, according to the company's latest financial results. On a sequential basis, net profit grew nearly 9% from ₹5,033 crore in the March quarter, while revenue increased 1.5% quarter-on-quarter. Total expenses increased 33% to ₹6,749 crore during the quarter ended June 30, 2026, compared with the previous quarter. The company's robust financial performance comes as it continues to benefit from strong demand for zinc and silver in global markets.
The proposed OFS comes as the government steps up its disinvestment programme and seeks to accelerate receipts from its stake sales in public sector and government-held companies, according to NDTV Profit. The transaction is also part of DIPAM's internal strategy to raise around ₹20,000 crore every quarter through various asset monetisation and disinvestment initiatives. The government has so far received ₹52,716 crore through disinvestment receipts, representing around 66% of its ₹80,000-crore full-year target.
The expectations of a fresh government stake sale in Hindustan Zinc gained prominence after the government moved ahead with an OFS in Hindustan Copper, as reported by Moneycontrol. On August 24, the government announced an offer to divest 3% equity in Hindustan Copper, along with a green-shoe option to sell another 3% in case of oversubscription, with a floor price fixed at ₹514 per share - a discount of around 10.5% to the stock's August 24 closing price. Hindustan Copper shares dropped more than 6% in early trade following the announcement, putting focus on Hindustan Zinc as the government progresses with its divestment plans.
