Hindustan Zinc’s Highest Ever Dividend Payout Fails To Meet Government Target
The mining agency will pay a total dividend of Rs 13,985 crore including tax.
Hindustan Zinc Ltd. announced its third interim dividend in the financial year 2016-17 on Wednesday, taking its total payout to Rs 27,157 crore – the highest ever by a Indian listed company in any financial year.
Of this, the government will get only Rs 6,664 crore, according to BloombergQuint’s calculations. This is far short of the Rs 15,000 crore payout that the Centre had factored in from the mining company, according to a a report by wire agency PTI. The government holds 29.4 percent stake in the company.
Hindustan Zinc will pay a dividend of Rs 27.50 per share this time around, it said in a stock exchange filing. This translates to a total spend of Rs 13,985 crore, including dividend distribution tax, the filing added. The outflow excluding taxes will stand at Rs 11,619.6 crore, according to BloombergQuint's calculations.
The latest payout follows a 'golden jubilee' dividend of Rs 24 per share announced in April last year. Subsequently in October, Hindustan Zinc declared another interim dividend of Rs 1.9 per share.
Hindustan Zinc had net cash and cash equivalents of Rs 25,319 crore as of December 31, 2016; out of which Rs 20,644 crore was invested in mutual funds and Rs 4,593 crore in bonds.
Shares ended the day 1.5 percent higher at Rs 311.75 on the BSE.