Mumbai17 minutes ago
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The board of Hindustan Zinc Limited (HZL) on Wednesday (August 20) approved a second interim dividend of ₹19 per share. Earlier, the company had declared a first interim dividend of ₹10 per share.
After the announcement of the second interim dividend, Hindustan Zinc’s stock today rose 3.73% to close at Rs 514.20. Earlier, the company’s stock had fallen by about 20% in the last four days.
The company’s stock gave a return of 63.19% in one year
The company’s stock has given a return of 65.28% in the last 6 months and 63.19% in one year. Talking about this year i.e. from 1 January 2024 till now, Hindustan Zinc’s stock has risen by 61.52%. The company’s market cap is Rs 2.16 lakh crore.
The company will pay a total special dividend of ₹ 8,028 crore
Hindustan Zinc said in an exchange filing that the company will pay a special dividend of Rs 8,028 crore. The record date for the second interim dividend has been fixed as August 28, 2024.
Vedanta will get ₹5,091 crore from dividend payment
After OFS, Vedanta will get ₹5,091 crore from dividend payment based on its current stake. Companies give a part of the profit to their shareholders, it is called dividend. Hindustan Zinc is a subsidiary of Vedanta Group.
Hindustan Zinc will give ₹ 2,400 crore to the government
Hindustan Zinc will give 30% of the special dividend (about Rs 2,400 crore) to the government as non-tax revenue. The government’s stake in Hindustan Zinc is 29.5%.
Vedanta sells 1.51% stake in Hindustan Zinc via OFS
In an exchange filing on Monday, Vedanta had said it had sold 1.51% stake in Hindustan Zinc through OFS, reducing its total stake in the company from 64.92% to 63.42%.
Vedanta has sold Hindustan Zinc shares in OFS at a price of Rs 486. Last week, Hindustan Zinc’s promoter Vedanta Limited announced that it was considering selling up to 3.17% stake in Hindustan Zinc through Offer for Sale i.e. OFS on Friday and Monday.
Special dividend will be different from regular dividend
This special dividend to be given to the shareholders will be different from the annual regular dividend given by the company. Hindustan Zinc gives around Rs 6,000 crore as dividend to its shareholders every year.
Vedanta held 64.92% stake in Hindustan Zinc in the June quarter
Before the OFS, Vedanta held 64.92% stake in Hindustan Zinc at the end of June quarter. Apart from Vedanta, the government holds 29.54%, LIC holds 2.76% and India’s mutual funds hold just 0.06% stake in Hindustan Zinc.
Small shareholders, or those with an authorised share capital of less than ₹2 lakh, hold just 1.51% stake in Hindustan Zinc. There are 4.33 lakh such shareholders as of the June quarter.
In 2022-23, the company had given a record dividend of Rs 32,000 crore
In the financial year 2023-24, the company gave a total of Rs 5,493 crore as dividend to its shareholders. In this, the government got Rs 1622 crore in exchange for 29.5% stake.
In the financial year 2022-23, the company gave a record dividend of Rs 32,000 crore to its shareholders. Then the government received Rs 9,500 crore.
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