“About 30 per cent of this or Rs 2,400 crore could contribute to the Center in its non-tax revenue for the financial year,” said sources with knowledge of the development.
This move was followed by the National Company Law Tribunal (NCLT) of Rs. 10,383 crore following the approval of transfer of general reserves to its retained earnings.
This special dividend is about Rs. 6,000 crore will be more than the regular dividend that HZL pays every year.
Apart from the government, this will also benefit promoter Vedanta Ltd, which owns around 65 per cent stake in HZL and has invested around Rs. 5,100 crore, which it can use to further de-leverage its balance sheet.
Vedanta will also sell up to 3.31 per cent stake in HZL through an offer for sale issue from August 16 to 19. He paid Rs. 486 has decided.
HZL has benefited from consistent growth in sales volume and balanced capital expenditure for continued operations, leading to a strong track record of cash flow generation. The company said in its plan of arrangement filed with the NCLT that it expects the growth momentum to continue and its business operations will continue to generate incremental cash flows in the coming years.
In the last financial year ended March 2024, Hindustan Zinc made a total of Rs. 5,493 crore as dividend was paid, of which the government received Rs. 1,622 crore was received.
In FY 22-23, the company generated around Rs. 32,000 crore in record dividend payments, with the government paying Rs. 9,500 crore was received.
During the June quarter, Hindustan Zinc’s market capitalization more than doubled as it raised nearly Rs. 1.6 lakh crore was added. In fact, the company during the quarter made Rs. 3.4 lakh crore touched its highest ever market cap.
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