Hindustan Zinc Share Price Slumps After Vedanta Block Deal

Shares of Hindustan Zinc Ltd. fell nearly 7% on Wednesday after Vedanta Ltd. pared its shareholding in the company by offering shares in the secondary market for Rs 3,018 crore.

The floor price for the Hindustan Zinc block deal was set at Rs 452.2 apiece, a 7% discount to Tuesday's closing on the NSE.

The residual stake of Vedanta will have a lock-up period of 90 days.

The Anil Agarwal-led company held a 63.42% equity in the zinc and silver producer as of March, according to shareholding data on the BSE.

Last year, it offloaded a 1.51% stake through an offer for sale.

The scrip fell as much as 6.96% to Rs 452.50 apiece, the lowest level since June 4. It pared losses to trade 6.10% lower at Rs 456.50 apiece, as of 9:20 a.m. This compares to a 0.09% decline in the NSE Nifty 50 Index.

It has fallen 2.65% on a year-to-date basis, and 29.46% in the last 12 months. Total traded volume so far in the day stood at 79 times its 30-day average. The relative strength index was at 67.56.

Out of 16 analysts tracking the company, six maintain a 'buy' rating, three recommend a 'hold' and seven suggest 'sell', according to Bloomberg data. The average 12-month consensus price target implies a downside of 6.1%.