Hindustan Zinc: Government’s coffers are going to be filled with Hindustan Zinc’s special dividend of Rs 8000 crore, board meeting on August 20

Hindustan Zinc Special Dividend: Vedanta Group company Hindustan Zinc is going to give a big gift to its shareholders. The company can announce a special dividend of around Rs 8000 crore to its shareholders, on which it will take a decision on 20 August 2024. The board of Hindustan Zinc is going to meet on Tuesday next week in which the Special Dividend will be considered and approved.

Vedanta Group and the Central Government can benefit greatly from Hindustan Zinc’s special dividend. Vedanta Group has a 64.92 percent stake in Hindustan Zinc. Vedanta Group is expected to get a dividend of Rs 5100 crore. The company will be helped in reducing its debt by receiving this dividend. Whereas the Government of India has a 29.54 percent stake in Hindustan Zinc and the Central Government can get a dividend of Rs 2400 crore. This special dividend is different from the regular dividend that the company pays to its shareholders every year. This decision is being taken after the National Company Law Tribunal ordered the transfer of this fund from the company’s general reserve.

In the financial year 2023-24, Hindustan Zinc gave a total dividend of Rs 5493 crore to the government, in which the government got Rs 1622 crore. In the financial year 2022-23, the company gave a dividend of Rs 32,000 crore, out of which the government got Rs 9500 crore in lieu of its stake. Hindustan Zinc’s stock has given strong returns to its shareholders in the current year 2024 and the stock has jumped by 80 percent. The market cap of the company is Rs 241,582 crore.