Hindustan Zinc plunges after 1.8% equity changes hand in block deal; Anil Singhvi bullish on cash-rich scrip

Hindustan Zinc shares slipped in Wednesday's session (June 18,2025) after 1.8 per cent equity, or 7.61 crore shares changed hands in a block deal today, in the pre-opening session. As per reports, the company's promoter Vedanta was expected to offload shares worth Rs 7,500 crore via block deals.

The proposed stake sale is seen to enhance liquidity as Anil Agarwal-led Vedanta Group aims to meet it debt obligations.

As of the last count at around 10:22 am, Hindustan Zinc shares declined over 5 per cent or Rs 25.45 at Rs 460.95 apiece on the BSE. On the NSE, the scrip fell to the day's low of Rs 452.5 per share.

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DAM Capital and Citi were reportedly managing the deal as brokers.

As per the latest shareholding date, Vedanta held a 63.42 per cent stake in the company.

Hindustan Zinc approves Rs 12,000 crore capex

The company's board has approved Rs 12,000 crore capex that will be met via internal cash and debt. Furthermore, as part of the capex push, the smelting capacity at DEBARI will be increased by 250 ktpa. Furthermore, mines capacity to be increased by 330ktpa.

Also, the company plans expansion plan to be executed in 36 months.

The company's Debari smelter unit will be producing 30 tpa or tonnes per annum silver. Silver prices are rising for the past some months, and is up 10 per cent in 3 months.

Furthermore, zinc production guidance has been at $1,025-1,050/tonne

Weightage in MSCI to increase

After promoter reduces stake in the metal company, its weightage in the global index MSCI is likely to see an increase.

Anil Singhvi on Hindustan Zinc

Zee Business Managing Editor Hindustan Zinc for higher levels of Rs 489 and Rs 493 with support at Rs 466 and Rs 471. He added that there is a buying opportunity in the Hindustan Zinc block deal.

One should consider buying near the floor price or the block deal price, he added. Further, the analyst noted that a block deal is more positive than an offer for sale (OFS).The company is set to gain from rising silver prices, he added.

Furthermore, the expert pointed out that Hindustan Zinc is a cash-rich company that pays dividends regularly.