Hindustan Zinc shares fall 3% on reports of fresh government stake sale via OFS

Hindustan Zinc shares fell on Tuesday as expectations of a fresh government stake sale through an offer for sale (OFS) resurfaced.

The stock hit an intraday low of Rs 586.85, down 2.84% from the previous close of Rs 604. So far this year, the stock has declined 2.83%, underperforming the NSE’s 6.16% gain.

The government is offering a 3% stake in the state-run copper producer, with an option to sell an additional 3% if the issue is oversubscribed. The OFS has a floor price of Rs 514 per share, around 10% below Hindustan Copper’s previous closing price of Rs 573.55.


The Hindustan Copper stake sale has revived expectations of a similar transaction in Hindustan Zinc. Earlier this month, Moneycontrol reported that the government could launch OFS transactions in four companies during the current financial year, with Hindustan Zinc and Hindustan Copper among the priority names.

The government is considering selling around 1.5% of its stake in Hindustan Zinc. At current market prices, such a stake sale could raise approximately Rs 3,500–4,000 crore, depending on the final offer size and pricing, Moneycontrol reported, citing sources.

Hindustan Zinc Q1 results

Hindustan Zinc, India’s largest silver producer, reported a consolidated net profit of Rs 5,469 crore for the first quarter of FY27, up 145% year-on-year from Rs 2,234 crore in the same quarter last year.

Revenue from operations rose 77% year-on-year to Rs 13,747 crore from Rs 7,771 crore, while total expenses increased 33% to Rs 6,749 crore during the quarter ended June 30, 2026.

On a sequential basis, net profit grew nearly 9% from Rs 5,033 crore in the March quarter. Revenue increased 1.5% quarter-on-quarter, while total expenses declined nearly 5%.

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