HINDUSTAN ZINC DECLARES 1,375% SPECIAL DIVIDEND

NEWDELHI: Hindustan Zinc Ltd on Wednesday announced a onetime interim dividend of ₹27.50 per share, which will cost the company ₹13,985 crore, including dividend distribution tax.

In a stock exchange notice, the company said that together with its golden jubilee dividend paid in April 2016 and the interim dividend paid in October 2016, the aggregate payout this financial year will be ₹27,157 crore, including tax.

Hindustan Zinc called it the largest dividend outflow by any company in India in a single financial year.

Of this, ₹11,259 crore will go to the government, which holds a 29.54% stake in the company.

“We are pleased to reward our shareholders with a special dividend, which reflects the company’s confidence in its continued robust performance and demonstrates our commitment towards delivering value for our shareholders. Since disinvestment by the government in 2002, the cumulative dividends paid by the company, including the current special dividend, is ₹37,517 crore, including dividend distribution tax,” chairman Agnivesh Agarwal said in a statement. The record date for the dividend is March 30.

Hindustan Zinc had reported a 28% jump in net profit for the December 2016 quarter to ₹2,320 crore, helped by higher metal production and better prices.

COMMODITY PRICES HAVE BEEN FIRMING UP IN THE PAST FEW MONTHS, AIDING MINERS AND METAL PRODUCERS