Hindustan zinc 's Committee of Directors has approved a significant debt fundraising initiative, sanctioning the issuance of non-convertible debentures worth ₹1400.00 crore. The committee meeting, held on January 23, 2026, concluded the approval process efficiently, commencing at 09:30 AM IST and concluding at 09:45 AM IST.

NCD Structure and Components

The approved NCDs will be unsecured, redeemable, rated, and listed instruments issued through private placement. The debentures are structured in two separately transferable and redeemable principal parts to provide flexibility in the issuance process.

Issuance Details and Listing

The NCDs will be issued on a private placement basis, targeting institutional and qualified investors. BSE Limited has been selected as the stock exchange for listing these debentures, ensuring liquidity and transparency for investors.

Terms and Conditions

The specific terms regarding tenure, coupon rates, interest payment schedules, and redemption details will be outlined in the disclosure documents. Since the debentures are unsecured, no charge or security will be created over the company's assets.

Key aspects of the NCD structure include:

• Security: Unsecured debentures with no asset backing
• Flexibility: Two separate principal parts allowing phased issuance
• Compliance: Full adherence to SEBI Listing Regulations
• Documentation: Comprehensive disclosure documents to be prepared

Regulatory Compliance

The approval follows the company's earlier communication dated January 20, 2026, and complies with Regulations 30 and 51 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has also adhered to SEBI Circular SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024, ensuring all regulatory requirements are met.

Currently, there are no defaults in payment of interest or principal amounts, and no special rights, interests, or privileges are attached to these instruments beyond what will be specified in the disclosure documents.

Nuvama has downgraded Hindustan Zinc to a 'Reduce' rating, signaling a shift in the brokerage's outlook on the zinc producer. The revision comes with a target price of ₹591.00 per share, reflecting the firm's reassessment of the company's investment potential.

Rating and Target Price Details

The brokerage firm's decision to assign a 'Reduce' rating indicates concerns about the stock's current valuation relative to its expected performance. The target price represents Nuvama's assessment of the stock's fair value based on their analytical framework.

Market Implications

The downgrade to 'Reduce' suggests that Nuvama expects the stock to underperform relative to the broader market or sector peers. This rating typically indicates that investors should consider reducing their exposure to the stock or avoid new positions at current price levels.

The target price of ₹591.00 provides investors with Nuvama's estimate of the stock's intrinsic value, serving as a benchmark for investment decisions. This price target will likely influence investor sentiment and trading activity in the near term.

Sector Context

Hindustan Zinc operates in the metals sector, which has been subject to various market dynamics including commodity price fluctuations and global economic conditions. The brokerage's revised stance reflects their analysis of these factors and their potential impact on the company's performance outlook.