Hindustan Zinc OFS sets stage for government's full exit. Here's why it's a big red flag

The wait is finally over. The government, the largest minority shareholder in Hindustan Zinc at 30 per cent, has finally gone ahead with its plan of reducing its stake in the miner. After years of delay and waiting for favourable market conditions, it is cornering around Rs 5,900 crore from selling 2.5 per cent in the zinc and silver producer through an offer for sale (OFS). The stock has leaped a sharp 73 per cent in the past year, thanks to buoyant silver prices, ensuring a handsome reward for the government. But the OFS is a reason for someone else to rejoice too—Hind Zinc's majority shareholder and parent Vedanta. You see, Vedanta and the government don't see eye to eye. The parent, for years, has prayed for the government to divest and exit