Hindustan Zinc Extends Losses Amid Vedanta's Ongoing Stake Sale

Shares of Hindustan Zinc Ltd. extended losses on Monday as its parent Vedanta Ltd. is selling a 3.31% stake in the company through an offer-for-sale that ends on Aug. 19. 

The parent company aims to sell up to 13.37 crore shares of its subsidiary Hindustan Zinc via an offer sale at a floor price of Rs 486 apiece. The company launched the offer on Friday and it will stay open until Monday.

Nomura anticipates that coal and iron ore mining firms will suffer more than limestone miners from the impact of retrospective taxation on minerals.

As of Monday, at least 1.15 million shares of Hindustan Zinc traded in a large deal.

Shares of the company fell as much as 6.13% to Rs 488.05 apiece. It pared gains to trade 5.23% lower at Rs 492.70 apiece as of 9:47 a.m. This compares to a 0.40% advance decline in the NSE Nifty 50 Index.

The stock has risen 56.36% in the last 12 months and 55.23% in year-to-date. Total traded volume so far in the day stood at nine times its 30-day average on the NSE. The relative strength index was at 23.9.

Out of 12 analysts tracking the company, one maintains a 'buy' rating, two recommend a 'hold,' and nine suggest a 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an downside of 19.7%.