Hindustan Zinc Shares Down: The shares of Hindustan Zinc dropped by 15% of their value in just six trading sessions. Some market experts are debating this drop. Is it time to buy shares at a lower price, or is it a sign of caution? Let’s know about the Hindustan Zinc Shares in detail.
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Hindustan Zinc Shares Down Reason
Hindustan Zinc shares drop by 15% in just six trading sessions. Market experts debating on it is time to buy shares at a lower price, or is it a sign of caution? The main reasons for the share falling are:
Promoters selling: Reports say Vedanta, the parent company selling a large part of its shares (up to ₹7,500 crore) in Hindustan Zinc by a special deal also called a “block deal”.
Investors’ Caution: Investors are being alert about the timing of the company’s spending plans and how the promoter’s sale affects stock in the short term.
Hindustan Zinc Big Plans for Growth
Even though Hindustan Zinc shares are falling, down company still has big ambitions. They’re board has approved a big investment of ₹12,000 crores in plans over the next three years (FY26-FY28). These investments will be used to:
- Increase smelting capacity by 250,000 tonnes per year.
- Boost mining and milling capacity by 330,000 tonnes per year.
- Increase silver refining capacity to 830,000 tonnes.
Vedanta has sold 66.7 million shares in Hindustan Zinc divesting 1.6% to the tune of 3,028 Cr.
— Equator (@BharatEquator) June 18, 2025
Earlier, The government had decided to take a pause on its stake sale considering the company's long term prospects.
Hindustan Zinc closed down 7% lower. pic.twitter.com/OiKdyhkfkS
FAQ On Hindustan Zinc Shares Down
Q: Why have Hindustan Zinc shares fallen by 15% recently?
A: Hindustan Zinc shares have fallen due to reports of its parent company, Vedanta, looking to sell a significant stake (up to ₹7,500 crore) through “block deals.” This potential large sale has created market caution and an overhang of supply.
Q: Does Hindustan Zinc pay dividends?
A: Yes, Hindustan Zinc is known for its consistent dividend payouts. The company recently declared an interim dividend of ₹10 per share for FY25- 26.
Q: How will the expansion affect the company’s costs?
A: The company expects its cost of production to fall to around $1,000 per tonne after the expansion, aided by better efficiency and captive power plants.
Jay Chavda He is the Founder and Writer of businesspulsecare.com. He is an I.T Engineer, Freelancer, Businessman. He posts Business, Stock/Share Market, Finance Related News and updates on the website. 🔗