Hindustan Zinc on August 12 issues a clarification on report of the company doling out Rs 6,000 crore in special dividend to its shareholders this month.
In a regulatory filing, the integrated producer of zinc and silver said that it is unable to comment on media speculation or rumors on the report published on Economic Times.
"It may be noted that any such kind of decision is under the power of the Board of Directors of the Company and the Company has not yet submitted any such proposal to the Board," Hindustan Zinc noted.
The clarification comes after ET reported, citing sources, that Hindustan Zinc's board is likely to meet over the next two weeks to decide on the payout, said one of the sources. Hindustan Zinc declined to comment.
The special dividend, which translates into a payout of Rs 14.2 per share for shareholders, will be in addition to the regular annual dividend, according to the ET report.
Further, as per the report, Vedanta, which holds a 64.92 percent stake in Hindustan Zinc, will receive Rs 3,895 crore in the event of the dividend payout. The company may use the special dividend to cut debt. The government with a 29.54 percent stake is expected to receive Rs 1,772 crore.
To this, HZL added that there is no information which has not been announced to the stock exchanges and which should have been announced by the Company in terms of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Meanwhile, shares of Hindustan Zinc on August 12 were trading 3.66 percent higher at Rs 615.80 apiece on BSE around 12 pm IST.
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