The government is reassessing the timing and mode of selling its remaining stake in Hindustan Zinc Ltd (HZL), as high and sustained dividend inflows make holding the company’s shares financially attractive, a senior official said.
HZL, one of India’s highest dividend-yielding listed companies, declared its first FY26 interim dividend of ₹10 a share on June 11, reinforcing its position as a steady source of revenue for the exchequer. The Centre holds a 27.94 percent stake in the company.
“The government is getting good dividends from HZL. It is a good stock. So maybe the government will not offload it immediately if it is giving good dividends,” the senior official told Moneycontrol on condition of anonymity.
While the government could potentially get to ₹40,000 crore by selling its residual stake at the current market price, it is now weighing whether the long-term cost in terms of lost dividends may outweigh immediate gains.
“This kind of thinking is there. If somebody is giving you a sustained dividend and if you sell it through OFS (Offer for Sale) or something, dividend loss will be there. You will have to see the cost-benefit. By selling the full government stake, the government may get ₹40,000 now but in 15 years, how much will the government lose because it will not get that dividend,” the official added.
First Published: Jun 13, 2025 2:27 PM IST
