Hindustan Zinc shares jumped over 5% today after the government ruled out an immediate stake sale and Jefferies raised its price target
Hindustan Zinc shares climbed more than 5% on Wednesday, August 26, 2026, after the government said it was not planning to sell its stake in the company right now. The rally came as a relief to investors who had been worried about fresh share supply hitting the market.
The stock rose to ₹623 in morning trade, a gain of 5.1% from its previous close of ₹592.60. The jump followed comments a day earlier from DIPAM Secretary Arunish Chawla, who told CNBC-TV18 that the government was “not looking at a stake sale in Hindustan Zinc at the moment.”
That statement came at a crucial time. Just a day before, on August 25, Hindustan Zinc shares had fallen 1.89% as investors braced for a possible government share sale. The worry had been building since August 24, when the government launched a separate stake sale in Hindustan Copper, another metals company under its disinvestment radar.
The Hindustan Copper offer for sale involved a 3% equity divestment, with an additional 3% green-shoe option, priced at a floor of ₹514 per share. That price marked a steep 10.5% discount to the stock’s previous close, and it dragged Hindustan Copper shares down more than 7% on August 25.
Because both Hindustan Copper and Hindustan Zinc had been flagged as priorities on the government’s disinvestment list, the copper sale triggered fears that zinc could be next. Market sources had indicated the government was weighing a sale of 1.5% to 2% of its Hindustan Zinc holding, a move that could have raised anywhere between ₹3,500 crore and ₹5,000 crore depending on final pricing.
The government currently holds a 27.92% stake in Hindustan Zinc, making it the company’s largest minority shareholder. Vedanta, the promoter group, controls a much larger 60.71% stake. DIPAM’s clarification effectively pushed any potential Hindustan Zinc share sale off the immediate table, even though officials described the residual government stake as a non-core asset that remains a candidate for disinvestment down the road.
Adding to the positive sentiment, global brokerage Jefferies raised its price target on Hindustan Zinc to ₹750 per share, implying an upside of roughly 27% from Tuesday’s closing price. The brokerage kept its “Buy” rating on the stock, pointing to strong momentum in both zinc and silver prices as the key reason behind the higher target.
Jefferies noted that spot zinc prices are currently running around 15% above their average levels from the June quarter. Silver prices have also staged a strong comeback, recovering 23% from the lows seen in July. Both commodities are central to Hindustan Zinc’s business, since the company produces zinc, lead and silver at its mining and smelting operations centered in Rajasthan.
Also Read: Hindustan Zinc Share Price Target
For comparison, Hindalco Industries, which also received a raised price target from Jefferies on the same day, saw a much milder reaction and traded largely flat at ₹1,050.50.
Looking at the bigger picture, DIPAM’s overall disinvestment programme remains active this fiscal year, with total collections so far reaching ₹52,716 crore. The government’s approach going forward appears focused on timing sales around strong valuations while still holding on to stakes in strategic public assets, rather than rushing into an immediate Hindustan Zinc share sale.
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