Hindustan Zinc‘s shares rose by 5% to Rs 325.25 in intra-day trade on Wednesday, following the announcement of an interim dividend of Rs 26 per share, which amounts to 1,300% on the face value of Rs 2 per share. This is the fourth interim dividend for the current financial year 2022-23, totalling Rs 10,985.83 crore, as stated by the company in an exchange filing.
The record date for payment of the fourth interim dividend has been fixed as March 29, 2023, with payment to be made within the prescribed timelines as per law. The stock has outperformed the market in the past week, surging 10% since the dividend plan announcement, while the S&P BSE Sensex gained less than 1% during the same period.
Vedanta holds a 64.92% equity share in Hindustan Zinc, while the government of India holds a 29.54% stake in the company. Hindustan Zinc’s operations include five zinc-lead mines, four zinc smelters, one lead smelter, one zinc-lead smelter, eight sulphuric acid plants, one silver refinery plant, six captive thermal power plants and four captive solar plants in Rajasthan.
Furthermore, Hindustan Zinc has a rock-phosphate mine in Matoon, near Udaipur in Rajasthan, and zinc, lead, silver processing and refining facilities in Uttarakhand. The company also has wind power plants in Rajasthan, Gujarat, Karnataka, Tamil Nadu and Maharashtra, and solar power plants in Rajasthan.
Hindustan Zinc, the largest primary zinc producer in India with a primary zinc market share of 80% (including alloys) in FY 2021-22, will continue to benefit from its favourable capital structure and strong liquidity, driven by its dominant position in the domestic market, high cash flow from the core business, and efficient and integrated operations.