Hindustan Zinc on December 6 approved the second interim dividend of Rs 6 per share for the current financial year. Earlier in July, it had announced the first interim dividend of Rs 7.
"The board has approved the second interim dividend of Rs 6 per equity share i.e. 300 percent on the face value of Rs 2 per share for FY 2023-24 amounting to Rs 2535.19 crore," Hindustan Zinc said in an exchange filing.
Since Vedanta holds 64.92 percent or 274 crore shares in Hindustan Zinc, it will get about Rs 1,645 crore of the total Rs 2,535 crore dividend outgo.
The record date to determine eligibility for the second interim dividend is December 14, 2023. In the previous financial year FY23, the company had declared a total dividend of Rs 75.5 per share.
At 10:15 am, Hindustan Zinc shares were quoting at Rs 326.50 on the NSE, up about 0.46 percent. Vedanta was quoting at Rs 243.30 on the NSE, up 0.37 percent.
In the September-ended quarter, Hindustan Zinc's net profit dropped 35.5 percent year-on-year (YoY), while revenue surged 18.5 percent. The management projected a capex guidance of $170-200 million for FY24.
Analysts at Systematix Institutional Equities have a “hold” rating on the counter with a target price of Rs 287. All eyes are now on Hindustan Zinc's corporate restructuring plan, which could unlock further value and help in fundraise, believe analysts.
Meanwhile, the government may be consider offloading only 3.5 percent of its 29.5 percent stake in Hindustan Zinc via the offer for sale (OFS) route in the initial tranche, sources told Moneycontrol last month.
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