Hindustan Oil Exploration shares experienced a strong rally, surging 3.6% to ₹632.00 as silver prices achieved a historic milestone by crossing the $72.00 per ounce mark.

Silver Achieves Record-Breaking Performance

Silver has emerged as one of the standout performers, delivering year-to-date gains of over 140%. This exceptional performance has significantly outpaced other asset classes, establishing new benchmarks in the precious metals sector.

Hindustan Zinc Positioned as Key Beneficiary

Hindustan Zinc stands as one of the primary beneficiaries of the ongoing silver price rally. The company holds a prominent position as one of the top global silver producers.

The company derives nearly 38% of its EBIT from silver operations, making it highly sensitive to silver price movements. This significant exposure positions Hindustan Zinc to capitalize on the current precious metals boom.

Strong Earnings Growth Projections

Analysts anticipate that the current price momentum in both global and domestic silver markets may continue to serve as a strong earnings driver for Hindustan Zinc. The combination of favorable commodity prices and operational efficiency is expected to support profitability growth.

Hindustan Zinc Limited has completed the payment of ₹63.90 lakh compounding fees following the receipt of a final order from the Regional Director. The company made the payment after receiving the final order on December 30, 2025, concluding the regulatory compliance process that began with an interim order in December.

Final Order and Payment Completion

Hindustan Zinc Limited received the final order from the Office of Regional Director, North Western Region, Ministry of Corporate Affairs on December 30, 2025, at 02:00 PM IST. The company promptly paid the compounding fees aggregating to ₹63.90 lakh, which included amounts imposed on both the company and ex-Whole Time Directors.

Regulatory Timeline and Process

The regulatory process began with an interim order dated December 16, 2025, which was received via email on December 17, 2025. Parent company Vedanta Limited had filed the initial regulatory disclosure under SEBI Regulation 30 on December 17, 2025, at 08:13 PM IST, informing stock exchanges about the penalty levy.

Nature of Compliance Violation

The penalty relates to Hindustan Zinc Limited's failure to mention Director Identification Numbers (DIN) of Directors as required under Section 158 of the Companies Act during financial years 2014-15 to 2020-21. The company acknowledged that the lapse was purely inadvertent and has been fully rectified from financial year 2022 onwards.

Impact Assessment and Current Status

Hindustan Zinc Limited confirmed no impact on its financial, operational, or other activities due to this penalty. The company has maintained transparency by ensuring all required disclosures are available on stock exchange websites, completing its regulatory obligations under SEBI Listing Regulations.