Hindustan Zinc Snaps Four-Day Fall After Board Approves Rs 19 Dividend
After the recent offer for sale, Vedanta now holds a 63.42% stake, and is expected to receive approximately Rs 5,091.42 crore.
Shares of Hindustan Zinc Ltd. rose on Tuesday, snapping a four day fall, after its board approved a second interim dividend of Rs 19 per equity share, translating to 950% of the face value of Rs 2 per share, for the financial year 2024–25.
The total dividend payout amounts to Rs 8,028.11 crore, according to an exchange filing. The record date for this dividend has been set for Aug. 28, 2024, with payments to be made as per regulatory timelines.
This follows the company’s first interim dividend of Rs 10 per share declared in May. Vedanta, which has recently reduced its stake in Hindustan Zinc via an offer for sale, received Rs 2,743 crore from the initial payout. After the recent stake sale, Vedanta now holds a 63.42% stake, and is expected to receive approximately Rs 5,091.42 crore.
The OFS, which involved the sale of 1.51% of Hindustan Zinc’s shares, was followed by a significant decline in the company’s stock price, falling nearly 18% over multiple sessions. However, following the dividend declaration, Hindustan Zinc’s share price has shown a moderate recovery.
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Shares of the company rose as much as 2.02% to Rs 505.70 apiece. It pared gains to trade 1.64% higher at Rs 503.85 apiece as of 12:42 p.m. This compares to a 0.66% advance in the NSE Nifty 50 Index.
The stock has risen 60.18% in the last 12 months. Total traded volume so far in the day stood at 8.8 times its 30-day average. The relative strength index was at 22.5.
Out of 12 analysts tracking the company, one maintain a 'buy' rating, two recommend a 'hold,' and nine suggest a 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an downside of 21.3%.
