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, sources told NDTV Profit. The proposed stake sale could fetch the government around Rs 4,000-5,000 crore, depending on the final offer size and price at which the shares are sold.
Officials from Hindustan Zinc met the Department of Investment and Public Asset Management (DIPAM) last week to discuss the proposed OFS, sources said. The transaction would mark the government's latest attempt to monetise part of its holding in the zinc producer.
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.
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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. The transaction is also part of DIPAM's internal strategy to raise around Rs 20,000 crore every quarter through various asset monetisation and disinvestment initiatives.
The government has so far received Rs 52,716 crore through disinvestment receipts. This represents around 66% of its Rs 80,000-crore full-year target, leaving a significant portion of the target to be achieved through the remainder of the financial year.
The Hindustan Zinc stake sale could therefore provide a sizeable boost to government receipts and help narrow the gap with the annual disinvestment target.
Hindustan Zinc Share Price Today
Hindustan Zinc shares rose 2.2% higher at Rs 608 per share on Monday. The shares have risen 7.14% in one week and 14.3% in one month. The shares are down 0.65% year-to-date but up 43.09% in the last one year.
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