HZL to pay Rs 10,990-crore interim dividend at 1,300% of face value

The Rajasthan-based miner will pay an interim dividend of 26 rupees per share, according to an exchange filing Tuesday

Anil Agarwal

Anil Agarwal

By Swansy Afonso

Hindustan Zinc will pay Rs 10,990 crore ($1.3 billion) to its shareholders, a fourth dividend this year, which will help billionaire Anil Agarwal (pictured) meet debt obligations at the parent company. 

The Rajasthan-based miner will pay an interim dividend of Rs 26 per share, which is 1,300 per cent on the face value of Rs 2 per share, according to an exchange filing on Tuesday. Key beneficiaries will be Agarwal’s Vedanta, which owns about 65 per cent of Hindustan Zinc, and the Indian government that holds around 30 per cent. London-based Vedanta Resources is the ultimate holding company.
The move would bring some relief to Agarwal, who has been forced to rely more on dividends after the Indian government opposed his plan to sell the group’s international zinc operations to Hindustan Zinc for about $3 billion. Indian companies typically announce dividends twice a year; this payout would be Hindustan Zinc’s fourth for the year through March.

In order to soothe investor concern over the company’s liquidity and ability to repay upcoming obligations, Vedanta Resources has already slashed its net debt by $2 billion this year — half of its three-year planned reduction commitment, it said in February.

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First Published: Mar 21 2023 | 6:37 PM IST

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