Dividend will entail an outflow of approximately Rs. 12,205 crore, including dividend distribution tax, Special Golden Jubilee dividend of 1200% i.e. Rs. 24 on an equity share of Rs. 2 each.
IndiaCSR News Network
UDAIPUR: In its meeting held today to consider a second interim dividend, the Board of Directors has declared a special Golden Jubilee dividend of 1200% i.e. Rs. 24 on an equity share of Rs. 2 each.
The record date for the dividends will be April 7, 2016. This dividend will entail an outflow of approximately Rs. 12,205 crore, including dividend distribution tax. The special dividend is in addition to the first interim dividend paid (Rs. 3.80 per share or 190%) in October 2015 of Rs.1,932 crore, including dividend distribution tax. Total annualized shareholders return over the last 14 years is 40% since 2002)
Since 2002 (disinvestment) Rs 32,500 crore has been paid by HZL to the Government in terms of royalties, direct & indirect taxes, dividend distribution tax etc. If included dividend tax on dividend announced today, the contribution would go up to Rs 34,500 crore, HZL said in a statement.
It is one of the highest ever dividend announced by a private company.
From the dividend announced today, Rs 3,000 crore would be paid to the government.
Agnivesh Agarwal, Chairman, said, “Hindustan Zinc has continued to deliver robust performance over the years, and during our Golden Jubilee year, we are pleased to reward our shareholders with a special Golden Jubilee dividend of Rs. 12,205 crore, including dividend distribution tax. We will continue to demonstrate our commitment towards delivering value for our shareholders.”
Sunil Duggal, Chief Executive Officer commented, “This is the highest ever dividend declared by the Company. Since the Government of India divested a stake in the Company in 2002, the cumulative dividend paid by the Company has been Rs. 22,566 crore including dividend distribution tax”.
Hindustan Zinc (NSE & BSE: HINDZINC) is the one of the largest integrated producers of zinc-lead with a capacity of 1.0 million MT per annum and a leading producer of silver. The Company is headquartered in Udaipur, Rajasthan in India and has zinc-lead mines at Rampura Agucha, Sindesar Khurd, Rajpura Dariba, Zawar and Kayad; primary smelter operations at Chanderiya, Dariba and Debari, all in the state of Rajasthan; and finished product facilities in the state of Uttarakhand.
Hindustan Zinc has a world-class resource base with total reserve & resource of 375.1 million MT and average zinc-lead reserve grade of 11.5%. The Company has a track record of consistently growing its reserve & resource base since 2003 and currently has a mine life of over 25 years.
The Company is self-sufficient in power with an installed base of 474 MW coal-based captive power plants. Additionally, it has green power capacity of 309 MW including 274 MW of wind power and 35 MW of waste heat power. The Company has an operating workforce of over 18,000 including contract workforce.
Hindustan Zinc has invested about Rs 16,000 crore since disinvestment in 2002. Expansion plans to increase the metal production from current 1 million tonne to 1.20 million tonne. Exports have increased 75 times, from Rs 51 crore in 2002 to Rs 3,800 crore in FY 2015.
Hindustan Zinc is a subsidiary of the BSE and NSE listed Vedanta Limited (formerly known as Sesa Sterlite Limited; ADRs listed on the NYSE), a part of London listed Vedanta Resources plc, a global diversified natural resources company.
