Dividend-paying stock Hindustan Zinc attracted huge buying interest in early trade on Thursday. Hindustan Zinc opened higher today, hitting an intraday high of Rs 287.85 per share on the NSE, about 6% higher than Wednesday’s close of Rs 271.65.

On Wednesday, the state-owned metal company’s board recommended a dividend of 21 rupees (1,050%) per share for the 2022-23 financial year. The Metal PSU Board of Directors has also fixed July 21, 2022, as the record date for finalising the payment of dividends by eligible shareholders.

Hindustan Zinc is trading at around Rs 285 per share today, implying an annual dividend yield of about 7.35% [(21/285) x 100] for the state-owned PSU shares.

Hindustan Zinc Limited notified the Indian Exchange of the proposed dividend payment, saying: “According to our letter dated July 8, 2022, under Regulation 30 of the Listing Regulations, we would like to inform you that the board has approved the resolution. Director of the company. On Wednesday, July 13, 2022, an interim dividend of Rs 21 per share has been approved, which is 1,050% of the par value of Rs 2 per share for the fiscal year 2022-23, totalling Rs 8,873.17 crore.”

“The interim payment record date of the notice is Thursday, July 21, 2022. The interim dividend will be paid within the period stipulated by law,” the metal company’s exchange communication further informed.

In its recently released production report for Q1FY23, Hindustan Zinc said it produced up to 252,000 tonnes of metal in the first quarter, compared to 2022, due to the resumption of key production in Sindesar with better factory support and Kayad. It grew 14% in the first quarter of the fiscal year. It subsequently fell 15% due to lower ore production and the mine’s overall metal grade.

Hindustan Zinc also claimed that refined metal production in the first quarter was 260,000 tonnes, a 10% increase compared to Q1FY22, in line with mined metal availability and plant availability quarter-on-quarter.