Hindustan Zinc Ltd (HZL) on Wednesday announced a one-time interim dividend of Rs 13,985 crore for the financial year 2016-17, of which the central government will get Rs 11,259 crore against its 29% stake.
With the worst behind, and prices of zinc, aluminium, and other base metals rebounding from 2016 lows, manufacturers are benefiting. Importantly, analysts see further increase in zinc and iron ore prices, and expect aluminium prices to remain firm.
Nifty Midcap100 index hit a new high after stocks such as Hindustan Zinc, Shree Cement, Reliance Infrastructure, Crisil, Jubilant Life Sciences and Pidilite Industries rallied over 6% on the National Stock Exchange (NSE) on Monday.
Hindustan Zinc, Dishman Pharmaceuticals & Chemicals, JK Cements, Page Industries, Tata Communications, TVS Motor Company, TVS Srichakra and Whirlpool of India from the BSE500 index hit their respective 52-week highs on the BSE in an otherwise subdued
Hindustan Zinc is trading flat at Rs 163 (adjusted to dividend) on the National Stock Exchange (NSE) after the stock turned ex-dividend for Rs 24 per share today. On Tuesday, the stock closed at Rs 187 on the NSE and BSE.
Hindustan Zinc has been on an uptrend since it hit a 52-week low in August last year. In seven months, it is up about 70 per cent and it hit a 52-week high of Rs 199.80 on intra-day basis last Thursday.
Hindustan Zinc's announcement of a special dividend is credit positive for Vedanta Resources as it staves off some of the refinancing pressure with respect to the latter's debt maturities in the fiscal year ending 31 March 2017, ratings agency Moody's
Even as base metal prices remain weak, putting pressure on non-ferrous stocks, the Street is bullish on Hindustan Zinc. The stock, which saw lows in August due to weak sentiments and falling zinc prices, has rebounded.
In a significant change in Hindustan Zinc, Sunil Duggal, the current Deputy CEO will take over as CEO and Whole-time-Director of Hindustan Zinc from October 1. 2015 and the current CEO Akhilesh Joshi will take over as President – Global Zinc
The government’s stakes in Hindustan Zinc Ltd (HZL)-Bharat Aluminium Company Ltd (Balco), Axis Bank, Larsen & Toubro (L&T), and ITC have been part of its disinvestment plans for years, though hardly ever has any sale been carried out.
After years of not being able to sell its residual stake in Anil Agarwal-promoted Hindustan Zinc and Balco, the central government is once again pushing for a resolution to the matter and hopes a proposed amendment in the Prevention of Corruption Act
A Supreme Court order last week has come as a major boost for compulsory purchase of renewable energy even though it is likely to increase the power costs for an industry dependent on captive power generation.