Shares of Hindustan Zinc (HZL) closed nearly 3 per cent higher after the company announced a special dividend of Rs 13,985 crore for 2016-17, taking the aggregate amount paid by it for the fiscal to Rs 27,157 crore.
The stock went up by 2.71 per cent to end at Rs 320.20 on BSE. During the day, it gained 3.31 per cent to hit Rs 322.10.
At NSE, shares of the company rose by 2.46 per cent to close at Rs 319.55.
Led by the strength in the stock, the company's market valuation went up by Rs 3,570.71 crore to Rs 1,35,294.71 crore.
On the volume front, 20.37 lakh shares of the company were traded on BSE, and over one crore shares changed hands at NSE during the day.
"Together with the golden jubilee dividend paid in April last year and the interim dividend 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," the company said in a statement yesterday.
DDT is dividend distribution tax.
Of Rs 27,157 crore, Rs 11,259 crore will go to the government, the company said.
In its meeting held yesterday to consider a second interim dividend, the board of directors has declared a special one- time interim dividend of 1,375 per cent 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), it 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," HZL Chairman Agnivesh Agarwal said.
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