Hindustan zinc share price

Hindustan Zinc’s 950% Dividend Sparks a 4% Surge in Shares—Don’t Miss the Details

Hindustan Zinc, a subsidiary of the mining conglomerate Vedanta, made headlines as its shares surged 4% following the announcement of a substantial 950% dividend for the financial year 2024-25. This dividend declaration, amounting to Rs 19 per equity share on a face value of Rs 2, has significantly impacted the stock’s performance, drawing attention from investors and analysts alike. Let’s dive into the details of this major development and its implications for Hindustan Zinc and its shareholders.

Dividend Announcement: A Closer Look

Hindustan Zinc’s board of directors recently approved a second interim dividend of Rs 19 per equity share for FY25, which translates to a whopping 950% on the face value of Rs 2 per share. The total payout amounts to Rs 8,028.11 crore, underscoring the company’s strong financial position and commitment to returning value to its shareholders.

This announcement has sparked a rally in Hindustan Zinc’s stock, with shares jumping 4% during intra-day trading on the Bombay Stock Exchange (BSE), reaching Rs 513.40. The company has already fixed August 28, 2024, as the record date for the dividend payment, ensuring that eligible shareholders receive their dues within the prescribed legal timelines.

Impact on Hindustan Zinc’s Stock Performance

The dividend announcement has had an immediate and significant impact on Hindustan Zinc’s stock performance. As of 1:44 PM on the day of the announcement, the stock was trading at Rs 512, up 3.28% from its previous close of Rs 495.75 on the BSE. The trading volume also saw a spike, with nearly 12.94 lakh equity shares of Hindustan Zinc, worth approximately Rs 65.10 crore, changing hands on the BSE.

Despite this recent surge, Hindustan Zinc shares are still 36.55% lower than their 52-week high of Rs 807, which was recorded on May 22, 2024. The company has faced some volatility, with shares falling 12.01% in the last week and 20.11% over the last month. However, the overall performance has been strong, with the stock yielding a return of 60.43% year-to-date and surging 64.19% in the last six months.

Vedanta’s Stake in Hindustan Zinc

In related news, Vedanta, which holds a majority stake in Hindustan Zinc, recently informed the exchanges that its shareholding in the company now stands at 63.42%. This change followed an offer for sale (OFS) in which Vedanta offloaded a 1.51% stake in Hindustan Zinc on August 16 and August 19, 2024.

This strategic move by Vedanta could be seen as a way to manage its investment portfolio, ensuring liquidity while still maintaining significant control over Hindustan Zinc. The OFS resulted in the sale of 63,605,891 equity shares, reducing Vedanta’s stake from its previous level but still keeping it well above the majority threshold.

Hindustan Zinc: A Strong Contender in the Market

Hindustan Zinc remains a powerhouse in the Indian stock market, with a market capitalisation of Rs 2,16,568.73 crore as of August 2024. The company is a key constituent of the BSE 200 index, reflecting its significance and influence within the broader market.

According to analytics from the BSE, Hindustan Zinc shares have been a solid performer over the long term. Hindustan zinc share price, Despite recent fluctuations, the stock has delivered a 62.44% return over the past year and a 64.19% return over the last six months. These figures highlight the company’s resilience and the underlying strength of its business operations.

Conclusion

The recent dividend announcement by Hindustan Zinc is a clear signal of the company’s robust financial health and its ongoing commitment to rewarding shareholders. Hindustan zinc share price, While the stock has experienced some volatility, the long-term outlook remains positive, especially given the substantial returns it has provided over the past year. As Vedanta continues to manage its stake in the company, investors will be watching closely to see how Hindustan Zinc navigates the future and continues to deliver value.