HINDUSTAN ZINC TO PAY SPECIAL DIVIDEND OF RS. 13,985 CRORE

The Board of Directors of Hindustan Zinc has declared a special one-time interim dividend of 1375% i.e. Rs. 27.50 on every equity share of Rs. 2, entailing an outflow of Rs. 13,985 Crore including dividend distribution tax (DDT) on 22nd March, 2017. The record date for the dividend will be March 30, 2017.

Together with the Golden Jubilee dividend paid in April 2016 and the interim dividend paid in October 2016, the aggregate dividend being paid by Hindustan Zinc during this financial year will be Rs. 27,157 Crore including DDT, which is the largest dividend outflow by any company in India in a single financial year. Of this, Rs. 11,259 Crore will go to the Government. 

Agnivesh Agarwal - Chairman, HZL said, “We are pleased to reward our shareholders with a special dividend, which reflects the Company's confidence in its continued robust performance and demonstrates our commitment towards delivering value for our shareholders. Since disinvestment by the Government in 2002, the cumulative dividends paid by the Company, including the current special dividend, is Rs. 37,517 Crore including dividend distribution tax.”

INCOME TAX DEPARTMENT RECEIVES RS. 2065 CRORE DIVIDEND TAX FROM HINDUSTAN ZINC

As part of dividend tax in view of the recently declared 1200% dividend by Hindustan Zinc, the Income Tax Department received Rs. 2065 crore from the Company on 12^th April, 2016. A symbolic cheque of Rs. 2065 crore was presented to Chief Commissioner of Income Tax Smt. Neena Kumar today by Hindustan Zinc CEO Sunil Duggal and company’s CFO Amitabh Gupta. Also present on this occasion were the Additional Commissioner of Income Tax O.P. Kanther, Director Projects of HZL Naveen Singhal and Head of Corporate Communication Pavan Kaushik.

Amitabh Gupta, the CFO of Hindustan Zinc informed that the Company has recently announced 1200% dividend, Rs. 24 on a share of Rs. 2, which entailed an outflow of Rs,. 12,205 crore including dividend tax, the actual dividend being 10,141 crore. The government share of dividend was about Rs. 3000 crore, as the government possesses  29% in Hindustan Zinc.  A cheque in this regard was presented by Hindustan Zinc to the Union Finance Minister Arun Jaitley on 11^th April 2016. 

GOVERNMENT RECEIVES RS. 5059 CRORE DIVIDEND (INCL TAX) FROM HINDUSTAN ZINC

HZL’s Special Golden Jubilee dividend of Rs 12,205 crore (including DDT) to the shareholders is second highest ever in the country after Coal India. Mr. Sunil Duggal CEO Hindustan Zinc Limited presented a dividend cheque of Rs 2,995 crore to Hon’ble Finance Minister Shri Arun Jaitley and the then Steel and Mines Minister Shri Narendra Singh Tomar on 11th April, 2016. The dividend was paid on account of Government of India’s residual stake of 29.54% in HZL (an erstwhile central public sector enterprise).
Secretary (Revenue) Dr. Hasmukh Adhia, Secretary (Mines) Shri Balvinder Kumar, Mr. Tom Albanese, Group CEO, Vedanta, Mr. Tarun Jain, Group Finance Director Vedanta, Mr. Amitabh Gupta, CFO, Hindustan Zinc and other senior officials of Ministries of Finance and Mines were also present on the occasion.
The highest ever dividend by a private company to the Government of India.