Shareholders of billionaire Anil Agarwal led Hindustan Zinc were ecstatic when the company announced a special dividend of Rs 27.5 per share, which collectively equals $2.1 billion. This roughly amounts to a staggering Rs 13,990 crore. Earlier also, the company had announced dividend, taking the total dividend announced in the fiscal year to $4 billion or Rs 27,160 crore. It is being said that this is the largest sum that has ever been declared as dividend by an Indian company. The dividend comes in the wake of huge profits booked by the company from the significant increase in metal prices.
Retail investors will definitely benefit, but the biggest beneficiary will be parent company Vedanta Ltd. that holds 65% stake in Hindustan Zinc. The next biggest beneficiary will be the government that holds a 30% stake. It may be recalled that profits of Hindustan Zinc has surged since the price of zinc has risen by a massive 55% during last year. Soon after the dividend announcement, shares of Vedanta rose 1.8% to Rs. 265.70 on BSE and Hindustan Zinc’s stocks rallied 2.5%.