Why did Hindustan Zinc make a ruckus? The step of the vendor took such a step that the price rolled

Hindustan Zinc Shares: The shares of Hindustan Zinc declined by more than 6 % on Wednesday, June 18 and with this it came to priced at Rs 455.60. There is a big reason behind this decline. In fact, Vedanta Limited sold its 1.71 percent stake in the company through a block deal, which is equal to 7.2 crore shares. That is, Vedanta has sold 7.2 crore shares of the company through the block deal.

Shares also saw lethargy

It is being told that this deal was done for Rs 3,323 crore at a floor price of Rs 460.5 per share. After this deal, Vedanta’s shares also declined, which slipped 0.20 percent to Rs 458.

Whose share in Hindustan Zinc

Let us know that Vedanta has a 63.42 percent stake in Hindustan Zinc and the Government of India has 27.92 percent stake. Apart from these, LIC and foreign institutional investors have the remaining stake.

Investment of 12000 crores in Hindustan Zinc

Even though there is a huge selling pressure in the shares of Hindustan Zinc after this block deal, the company is focusing on its long term growth. The company’s board has approved an ambitious plan to increase its production capacity of zinc, lead and silver.

Under this project of Rs 12,00 crore, the production of refined metal will be increased to 250 kilotons annually. It also includes upgradation of mining and milling. The company aims to complete this project within 36 months.

Despite this decline in the company’s shares on Wednesday, brokerage firms remain positive about it. JM Financial has maintained its rating of ‘buy’ on the company’s stock with its target price of Rs 550, which is 13 percent more than its current price.

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