Hindustan Zinc (HZL) is a Vedanta Group company, in which Govt. of India is holding about 125 crore shares, being 29.5% stake as Non Promoter. HZL has paid 2 interim dividends in FY 2020-21 already, with first of Rs. 16.50 per share on 20-5-20 and second of Rs. 21.30 on 30-10-20. Hence, Govt. got an amount of Rs. 4,725 crore as its share.
HZL is still having net cash of about Rs. 10,000 crore, after paying these 2 dividends, which translates in a cash of Rs. 23 per share. Infact, Q2 numbers of HZL were also quite robust, with PAT of Rs. 1,940 crore, translating into an EPS of Rs. 4.55.
It is learnt that Govt. is keen to divest its residual stake of 125 crore shares in this FY itself, for which, preparatory works are done in Finance Ministry, including seeking permission from Apex Court. It is likely that HZL may declare one more interim dividend of Rs. 20 per share in this FY, while Govt thereafter may be keen to selling shares at Rs. 220 per share. This will give a total sum of Rs. 30,000 crore, which will be crucial to meet its Divestment target, as also, to tide over fiscal hardship in this Covid time. Obviously, Vedanta Group is keen to accept this rate, as revealed by the insiders.
Infact, insiders also say that Vedanta delisting fell, as Vedanta Group wanted to use the earmarked fund of Rs. 30K crore, for buying this residual stake. Will it be win - win for all stakeholders?