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Hindustan Zinc Unveils Rs12,000 Crore Expansion as Shares Drop After Vedanta Block Deal

Board approval initiates a 36-month, Rs12,000 crore capex to boost annual refined metal capacity to over 2 million tonnes.

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Hindustan Zinc shares tumble 6%, Vedanta up on block deal; what stock analysts say on HZL
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Overview

  • Hindustan Zinc’s board approved a ₹12,000 crore plan to double zinc, lead and silver output and expand matching mines and mills capacity
  • The project includes a new 250 ktpa integrated smelter at Debari in Rajasthan with completion targeted within 36 months
  • The company will fund the expansion through internal accruals and debt and expects revenue to reach ₹42,000 crore with EBITDA of ₹22,000 crore post-completion
  • The investment aligns with projections that India’s zinc demand will double over the next 5–10 years driven by infrastructure and steel production growth
  • Shares slipped 5–7% after Vedanta sold up to ₹7,500 crore of Hindustan Zinc stock via block deals, reflecting investor concern over promoter stake dilution