Hindustan Zinc Ltd (HZL) plans to distribute the second interim dividend for the current fiscal. The Vedanta group firm has also fixed the record date for the special dividend, if approved, at the upcoming board meeting scheduled for next week.
The company, in a regulatory filing, said the meeting of the board of directors of the company is proposed to be scheduled on Tuesday, August 20, 2024, "to consider and approve the second interim dividend on equity shares, if any, for the financial year 2024-25."
The record date for the purpose of determining the eligibility of the equity shareholders for the said dividend, if declared, has been fixed as Wednesday, August 28, 2024, the company said in a statement.
The company has plans to dole out a special dividend payout of Rs 8,000 crore to its shareholders in the current fiscal, the PTI reported earlier in the day. "Of this, around 30 percent or Rs 2,400 crore may go to the Centre contributing to its non-tax revenues for the fiscal," PTI quoted sources in its report. This special dividend will be over and above the regular dividend of around Rs 6,000 crore, which HZL doles out every year, it added.
The special dividend announcement by the company will also benefit promoter Vedanta, which holds around 65 per cent stake in HZL, and will receive around Rs 5,100 crore, which it may use to further de-leverage its balance sheet.
The move follows the National Company Law Tribunal's (NCLT) approval to transfer Rs 10,383 crore of general reserves to its retained earnings.
Hindustan Zinc is one of the highest dividend paying listed companies on the bourses with a dividend yield of 3.99 percent at the current levels.
Hindustan Zinc Dividend History
The company earlier paid an dividend of Rs 10 on May 15, 2024. Prior to that, it distributed dividend to its shareholders of Rs 6 on December 14, 2023.
The counter settled at Rs 576 per share on the National Stock Exchange (NSE) in Wednesday's trading session, down marginally by 0.69 percent. The scrip has been falling for the last two days and has fallen 6.91 percent returns in the period.
A total of 3.12 lakh shares changed hands of Hindustan Zinc on Wednesday which is a constituent of BSE 200 index generating a total turnover of Rs 17.83 crore. The large cap company has a market cap of Rs 2,42,089.65 crore, as per BSE website. The shares of the company have a PE of 29.61x. In volume terms, over 30 lakh shares of the company were traded on the NSE during on Wednesday.
Hindustan Zinc shares have delivered multibagger returns of 109.30 per cent in the last two years, as per data available on the BSE.
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