Hindustan Zinc Share Price Falls as Vedanta Trims Stake

On Wednesday, June 18, 2025, shares of Hindustan Zinc fell by more than 7%, after a major shareholder, Vedanta, sold a 1.71% stake in the company. The stake, worth approximately ₹3,323 crore, was sold through a block deal.

What Happened?

Vedanta, which held a 63.42% stake in Hindustan Zinc as of December 31, 2024, decided to reduce its shareholding slightly. This sale, reported in the stock market filings, triggered a negative response from investors and caused the share price to drop.

The stock has seen a 9% decline over the past week, making this one of the sharpest falls for Hindustan Zinc in recent months.

Why Did Vedanta Sell Its Stake?

While the company has not officially disclosed the reason, such stake sales are usually done to raise capital or manage debt. Vedanta has been working on improving its balance sheet, and this could be a part of that broader strategy.

However, the timing of the sale and its size may have spooked investors, leading to a quick sell-off in the market.

Market Reaction

The market doesn’t always take stake sales positively — especially when it comes from the promoter group or major shareholders. Investors often worry that it signals lower confidence in the company’s near-term performance. This is likely one of the reasons why the stock fell over 7% in a single trading session.

What Should Investors Do?

If you're a current investor in Hindustan Zinc, this news might feel concerning. But it's important to look at the bigger picture:

• Hindustan Zinc is still one of India’s largest zinc producers and has strong fundamentals.

• Vedanta still holds a majority stake, and this sale was relatively small in comparison to its total holdings.

• It could be a short-term market reaction rather than a long-term trend.

As always, investors should consult a financial advisor before making any big decisions.

Final Thoughts

Stake sales by promoters often grab headlines — and for good reason. They can move the stock price significantly, as we saw with Hindustan Zinc today. But instead of panicking, it's always best to stay informed and consider all factors before reacting.

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Reference from:- https://www.moneycontrol.com/news/business/markets/hindustan-zinc-shares-tumble-7-as-vedanta-offloads-1-71-stake-worth-rs-3-323-crore-13136453.html