NEW DELHI: Hindustan Zinc Ltd pays 109.9 billion rupees ($1.3 billion) to its shareholders, a fourth dividend this yr, which is able to lend a hand billionaire Anil Agarwal meet debt responsibilities on the mum or dad corporate.
The Rajasthan-based miner pays an intervening time dividend of Rs 26 in line with percentage, in line with an trade submitting Tuesday. Key beneficiaries shall be Agarwal’s Vedanta Ltd, which owns about 65% of Hindustan Zinc, and the Indian govt that holds round 30%. London-based Vedanta Resources Ltd. is without equal maintaining corporate.
Disbursements for the yr from all of the 4 dividends general 319.13 billion rupees, in line with Bloomberg calculations. For context, Hindustan Zinc gave just one dividend within the monetary yr prior to the present one and two dividends within the yr earlier than that. Indian corporations in most cases announce dividends two times a yr.
The additional influx would carry some aid to Agarwal, who has been compelled to depend extra on dividends after the Indian govt adversarial his plan to promote the gang’s world zinc operations to Hindustan Zinc for roughly $3 billion.
In order to assuage investor fear over the corporate’s liquidity and skill to pay off upcoming responsibilities, Vedanta Resources has already slashed its web debt via $2 billion this yr — part of its three-year deliberate aid dedication, it stated in February.
Hindustan Zinc’s stocks closed flat in Mumbai on Tuesday forward of the announcement. Vedanta Ltd. rose 1.4%.
The Rajasthan-based miner pays an intervening time dividend of Rs 26 in line with percentage, in line with an trade submitting Tuesday. Key beneficiaries shall be Agarwal’s Vedanta Ltd, which owns about 65% of Hindustan Zinc, and the Indian govt that holds round 30%. London-based Vedanta Resources Ltd. is without equal maintaining corporate.
Disbursements for the yr from all of the 4 dividends general 319.13 billion rupees, in line with Bloomberg calculations. For context, Hindustan Zinc gave just one dividend within the monetary yr prior to the present one and two dividends within the yr earlier than that. Indian corporations in most cases announce dividends two times a yr.
The additional influx would carry some aid to Agarwal, who has been compelled to depend extra on dividends after the Indian govt adversarial his plan to promote the gang’s world zinc operations to Hindustan Zinc for roughly $3 billion.
In order to assuage investor fear over the corporate’s liquidity and skill to pay off upcoming responsibilities, Vedanta Resources has already slashed its web debt via $2 billion this yr — part of its three-year deliberate aid dedication, it stated in February.
Hindustan Zinc’s stocks closed flat in Mumbai on Tuesday forward of the announcement. Vedanta Ltd. rose 1.4%.