A detailed high pressure investigation is carried out using x-ray diffraction, Raman spectroscopy and low temperature resistivity measurements on hexagonal ZrSe 2 having an excess of 3 at.% Zr.Structural studies show that the sample goes through a gradual structural transition from hexagonal to monoclinic phase, with a mixed phase in the pressure range 5.9 GPa to 14.8 GPa. Presence of minimum in the c/a ratio in the hexagonal phase and a minimum in the full width half maximum of the A 1g mode at about the same pressure indicate to an electronic phase transition. The sample shows a metallic characteristic in its low temperature resistivity data at ambient pressure, which persist till about 5.1 GPa and can be related the presence of slight excess Zr. At and above 7.3 GPa, the sample shows a metal to semiconductor transition with opening of a very small band gap, which increases with pressure. The low temperature resistivity data show an upturn, which flattens with increase in pressure. The phenomenological analysis of the low temperature resistivity data indicate to the presence of Kondo effect in the sample, which may be due to the excess Zr.