Vedanta to receive nearly Rs5,843cr dividend from Hindustan Zinc; stock gains 5% in 1 day

Hindustan Zinc fixed October 28, 2020, as the record date for the purpose of determining the eligibility for payment of interim dividend.

Oct 21, 2020 04:10 IST India Infoline News Service

On Wednesday, Vedanta stock witnessed huge buying sentiment after the company's subsidiary Hindustan Zinc announced a dividend payout of Rs9,000cr for financial year FY21 to shareholders. Vedanta holds a controlling stake in Hindustan Zinc.

On Sensex, Vedanta gained by over 5% before ending at Rs101.25  per piece up 2.02%. The stock surged to the day's high of Rs104.35 per piece.

As per the regulatory filing, Hindustan Zinc received the board of directors approval for an interim dividend of Rs21.30 per equity share i.e. 1,065% on the face value of Rs2 each for the financial year FY21 amounting to Rs9,000cr.

Hindustan Zinc fixed October 28, 2020, as the record date for the purpose of determining the eligibility for payment of interim dividend.

According to the regulatory filing, Vedanta holds 2,74,31,54,310 equity shares in Hindustan Zinc, representing 64.92% stake.

Taken into consideration the Vedanta shareholding and the floor price of Rs21.30 per share for interim dividend, then Hindustan Zinc is set to pay whopping Rs5,843cr to Vedanta. 

Related Story