New Delhi, June 5 -- Shares of Hindustan Zinc plunged nearly 6% on Friday after a media report indicated that the government is considering selling up to a 2% stake in the company through an offer that could fetch as much as Rs.5,000 crore ($525 million).

The stock fell as much as 5.7% to an intraday low of Rs.569.20 on the BSE. Shares of Vedanta, the parent company of Hindustan Zinc, also came under pressure and declined nearly 5% to Rs.312.35 apiece following the report.

According to the report, the Department of Investment and Public Asset Management (DIPAM) is targeting a launch of the stake-sale process either later this month or in July. The report added that ICICI Securities, Axis Capital, IIFL Capital Services and HDFC Securitie...