Hindustan Zinc Announces ₹19 Per Share Interim Dividend

20 Aug 2024 , 02:13 PM

Hindustan Zinc has announced a second interim dividend of ₹19 per share for FY25, totaling ₹8,028.11 Crore, as per the company’s notice to stock exchanges on August 20.

At 1:00 PM on the same day, Hindustan Zinc’s shares rose by 3%, while Vedanta Limited’s shares increased by 0.5%. At the time of writing, shares of Hindustan Zinc is trading at ₹508 which is a 2.66% gain than the previous close. Hindustan Zinc stock has gained a total of 61% in the last one year, and almost 59% since the beginning of the year.

The record date for this dividend payment is set for Wednesday, August 28. This special dividend will benefit Vedanta, the promoter with a 65% stake in Hindustan Zinc, aiding in further de-leveraging its balance sheet.

Anil Agarwal-led Vedanta recently divested a 3.17% stake in Hindustan Zinc via an offer-for-sale (OFS) from August 16-19, with a floor price of ₹486 per share, valued at approximately ₹6,000 Crore.

As of the end of June, Hindustan Zinc’s debt was ₹11,178 Crore, contributing to Vedanta Group’s total debt of ₹78,016 Crore.

In May, Hindustan Zinc had announced an interim dividend expenditure of ₹4,225 Crore to support Vedanta’s debt reduction efforts.

Hindustan Zinc is known for its high dividend payouts, with a yield of 3.99%. The company previously paid a ₹10 dividend on May 15, 2024, and a ₹6 dividend on December 14, 2023.