Hindustan Zinc block deal: Promoter Vedanta to sell shares today; stock price targets
Vedanta held 2,67,95,48,419 shares or 63.42 per cent stake in HZL at the end of March quarter. DAM Capital and Citi are the brokers facilitating the transaction.
- Jun 18, 2025,
- Updated Jun 18, 2025 9:04 AM IST
Shares of Vedanta-promoted Hindustan Zinc Ltd (HZL) are in focus on Wednesday morning as Vedanta is seen selling shares worth Rs 3,018.20 crore through block deals. The anticipated sale is likely to be at a discount of up to 7 per cent from the prevailing closing price. The floor price is set at Rs 452.50 apiece against Hindustan Zinc's closing price of Rs 486.35 on NSE, sources told Business Today. The total offer size is said to be of 6.67 crore shares, comprising of 1.6 per cent of existing total outstanding shares. A few reports, meanwhile, suggested Vedanta could sell up to Rs 7,500 crore worth HZL shares.
Vedanta held 2,67,95,48,419 shares or 63.42 per cent stake in HZL at the end of March quarter. DAM Capital and Citi are the brokers facilitating the transaction.
The move comes as Hindustan Zinc has received board approval for the initial phase of an ambitious strategy to double its production capacity for zinc, lead, and silver. As part of this plan, the company will construct a 250,000-tonne-per-annum integrated zinc metal complex in Debari, Rajasthan, which will include supporting mining and milling infrastructure. This move underscores Hindustan Zinc’s strong commitment to scaling up its production capabilities and reinforcing its leadership in the metals sector.
"We view this as a positive step as the new capex plan provides volume growth visibility—even though FY29 onwards with expected payback of more than five years at peak capacity utilisation. The announcement is a long-term growth enabler; near-term earnings are contingent on commodity prices only. HZ is trading expensive at 10.2x FY27E EV/Ebitda. We value the stock at 8x FY27E EV/EBITDA with an unchanged target of Rs 403," said Nuvama Institutional Equities.
MOFSL said the expansion plans are in line with the company’s long-term target to double its capacity. Hindustan Zinc continues to focus on improving production with tight cost control measures.
"We retain our earnings estimates for FY26-27E and expect HZL to maintain its focus on profitability. Additionally, the favorable pricing condition is likely to further support margins," MOFSL said.
The brokerage said Hind Zinc trades at 8.5 times FY27E EV/Ebitda and that it believes the current valuation prices in all positive factors.
"We reiterate our Neutral rating with a target price of Rs 480 (premised on 8.5 times EV/Ebitda on FY27 estimates," MOFSL said.
Shares of Vedanta-promoted Hindustan Zinc Ltd (HZL) are in focus on Wednesday morning as Vedanta is seen selling shares worth Rs 3,018.20 crore through block deals. The anticipated sale is likely to be at a discount of up to 7 per cent from the prevailing closing price. The floor price is set at Rs 452.50 apiece against Hindustan Zinc's closing price of Rs 486.35 on NSE, sources told Business Today. The total offer size is said to be of 6.67 crore shares, comprising of 1.6 per cent of existing total outstanding shares. A few reports, meanwhile, suggested Vedanta could sell up to Rs 7,500 crore worth HZL shares.
Vedanta held 2,67,95,48,419 shares or 63.42 per cent stake in HZL at the end of March quarter. DAM Capital and Citi are the brokers facilitating the transaction.
The move comes as Hindustan Zinc has received board approval for the initial phase of an ambitious strategy to double its production capacity for zinc, lead, and silver. As part of this plan, the company will construct a 250,000-tonne-per-annum integrated zinc metal complex in Debari, Rajasthan, which will include supporting mining and milling infrastructure. This move underscores Hindustan Zinc’s strong commitment to scaling up its production capabilities and reinforcing its leadership in the metals sector.
"We view this as a positive step as the new capex plan provides volume growth visibility—even though FY29 onwards with expected payback of more than five years at peak capacity utilisation. The announcement is a long-term growth enabler; near-term earnings are contingent on commodity prices only. HZ is trading expensive at 10.2x FY27E EV/Ebitda. We value the stock at 8x FY27E EV/EBITDA with an unchanged target of Rs 403," said Nuvama Institutional Equities.
MOFSL said the expansion plans are in line with the company’s long-term target to double its capacity. Hindustan Zinc continues to focus on improving production with tight cost control measures.
"We retain our earnings estimates for FY26-27E and expect HZL to maintain its focus on profitability. Additionally, the favorable pricing condition is likely to further support margins," MOFSL said.
The brokerage said Hind Zinc trades at 8.5 times FY27E EV/Ebitda and that it believes the current valuation prices in all positive factors.
"We reiterate our Neutral rating with a target price of Rs 480 (premised on 8.5 times EV/Ebitda on FY27 estimates," MOFSL said.