- Total payout at a record Rs.32,000 cr this fiscal.
- Vedanta holds 64.92 per cent stake in HZL.
New Delhi: Vedanta Group firm Hindustan Zinc Ltd (HZL) on Tuesday said its board has approved a fourth interim dividend of Rs 26 per equity share or 1,300 per cent for FY2022-23 amounting to Rs 10,985.83 crore.
This takes the Udaipur-based Hindustan Zinc's total payout to shareholders at a record Rs 32,000 crore this fiscal, making it among the top-dividend payers in the country.
"The board of directors of the company in its meeting held on March 21, 2023 have approved fourth interim dividend of Rs 26 per equity share i.e. 1300% on face value of Rs.2 per share for the financial Year 2022-23 amounting to Rs.10,985.83 crore," Hindustan Zinc said in a filing to BSE.
The fourth interim dividend will be paid within stipulated timelines as prescribed under law, it said.
HZL said that it has declared its ever-highest dividend of Rs 32,000 crore for FY'23 by announcing the fourth interim dividend.
HZL, in which Vedanta holds a 64.92 per cent stake and has for long been unsuccessfully trying to buy back the residual government stake, is the largest and only integrated producer of zinc, lead and silver in the country. It operates the world's largest underground zinc mining operation at its Rampura Agucha mine in the Udaipur district of Rajasthan.
The government, which has a 29.54 per cent stake in HZL, recently opposed to Hindustan Zinc's proposed USD 2.98 billion acquisition of zinc assets from Vedanta Ltd as the Rajasthan-based company has long been a cash cow for oil-to-metals conglomerate, squeezing out rich dividends.
The company further said that the board has noted the letter dated February 17, 2023, received from the mines ministry.
In a letter dated February 17 to Hindustan Zinc, the mines ministry had opposed Vedanta's move to sell the zinc assets and had threatened to take legal action to stop the sale of Africa-based assets to HZL.
In a letter to HZL, posted by the company to stock exchanges, the ministry of mines had said the deal is a "related party transaction" and the government would "like to reiterate" its dissent.